2026 tax preference review: Large Private Airplanes Owned by Nonresidents
July 2026
Geoff Cunningham, research analyst
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Contact information
Legislative auditor's conclusion
The preference likely supports jobs and meets the Legislature's goal of increasing state tax revenues. The 2019 report had similar findings.
Read the full reportKey points
- With the preference, plane owners who live outside Washington do not pay sales or use tax on large airplane modifications done in Washington.
- Modifications often involve interior renovations and electronic upgrades.
- Since 2017, eligible plane owners saved an average of $2.7 million per fiscal year.
- Economic modeling suggests the preference generates approximately $5.7 million in net state tax revenue and supports up to 1,000 jobs, including modification workers, contractors, and others.
- Other states offer similar tax exemptions for this work.
Legislative auditor’s recommendations
State law requires the legislative auditor to recommend legislative action for each tax preference. The legislative auditor makes one recommendation.
Recommendation #1
The Legislature should continue the preference beyond its July 2031 expiration because it meets the Legislature's goals and its criteria for extension.
The Legislature directed JLARC staff to assess the net impact on state revenues. Large airplane modification work performed in Washington likely supports up to $5.7 million in state tax revenue per year, resulting in a net positive impact. If the preference were allowed to expire, the modification activity may cease.
If this preference were continued without change, beneficiaries would have tax savings like those shown in the savings summary graph. This would reduce state revenues by a corresponding amount.
On or before the preference's expiration date of July 1, 2031.
Responses from the Office of Financial Management (OFM) and the Department of Revenue (DOR) will be included with the proposed final report
Video summary
Read the full report
Large Private Airplanes Owned by Nonresidents (HTML)
Read an overview
Read the agency response
To be included in proposed final report
Legislative mandate