HB 2592
In CommitteeHouse
Aircraft fuel tax proceeds
Directing the deposit of the proceeds from taxes on aircraft fuel to the aeronautics account.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill redirects all tax revenue collected from aircraft fuel—including excise, sales, and use taxes—into the aeronautics account, ensuring those funds are used exclusively for aviation-related purposes. Previously, some of this revenue went to other accounts like the oil spill response fund and pollution liability insurance trust account.
- Requires all tax revenue from aircraft fuel under the state’s petroleum product tax (RCW 82.21.030), oil spill response tax (RCW 82.23B.020), and petroleum products tax (RCW 82.23A.020) to be deposited into the aeronautics account.
- Confirms that aircraft fuel is defined in RCW 82.42.010 and clarifies that only aviation-related uses of fuel are included in this reallocation.
- Maintains existing rules for collecting and reporting taxes on aircraft fuel, including collection by terminal operators and reporting deadlines.
- Requires the state treasurer to credit all aircraft fuel tax proceeds to the aeronautics account, which can only be spent on aviation-related purposes after legislative appropriation.
- Excludes aircraft fuel from the general sales and use tax deposits to the state general fund—those taxes still go to the general fund, but excise taxes on aircraft fuel now go to the aeronautics account.
Who is affected
- State aviation agencies and aviation infrastructure — State aviation programs and infrastructure benefit from dedicated funding for aviation-related activities, including airport maintenance, safety initiatives, and planning.
- Aircraft fuel distributors and terminal operators — Aircraft fuel distributors and terminals must comply with updated deposit rules and may need to adjust billing/invoicing practices to reflect tax changes.
- Aviation users (pilots, flight schools, aviation businesses) — Private and commercial pilots, flight schools, and aviation businesses may see changes in fuel pricing or how taxes are collected and used.
- State general fund and related trust accounts — General state budget and related accounts (e.g., oil spill response, pollution liability insurance) may see reduced revenue from aircraft fuel taxes previously allocated to them.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Dedicated funding for aviation-related purposes improves transparency and predictability for aviation infrastructure investment, supporting airport safety, maintenance, and planning—benefiting pilots, flight schools, and regional airports.
TransportationRef: Sec. 1(d), Sec. 2(c), Sec. 3(b), Sec. 4(1), Sec. 4(2)Enhanced aviation safety funding may support improved air traffic control modernization, runway inspections, and emergency response training—indirectly benefiting all air travelers and communities near airports.
Public SafetyLean peopleRef: Sec. 4(1), Sec. 4(2)Flight schools, FBOs (fixed-base operators), and regional airlines may benefit from more stable and dedicated state support for aviation services and infrastructure, potentially supporting jobs and service quality in the sector.
Business & EmploymentLean peopleRef: Sec. 4(1), Sec. 4(2)Local airports and regional aviation authorities may receive more consistent state funding, improving long-term planning and capital investment capacity—though the bill does not specify allocation formulas, limiting guaranteed local benefit.
Local GovernmentRef: Sec. 1(d), Sec. 2(c), Sec. 3(b)Clarifying that sales and use taxes on aircraft fuel remain in the general fund prevents unintended double-dipping and preserves general fund revenue that supports broader public services.
FinancialRef: Sec. 4(3)
Potential Concerns (5)
Reduced funding for the oil spill response account and pollution liability insurance program trust account may weaken the state’s capacity to respond to environmental emergencies involving hazardous materials, especially in marine and aviation contexts.
Public SafetyPeopleRef: Sec. 1(d), Sec. 2(c), Sec. 3(b)The oil spill response tax and pollution liability insurance tax on aircraft fuel—previously dedicated to environmental protection and liability coverage—will no longer fund those programs, potentially increasing long-term environmental and financial risk from aviation-related fuel spills or contamination.
EnvironmentPeopleRef: Sec. 2(b), Sec. 2(9)(a), Sec. 3(2)Local governments and regional port districts that rely on state aviation grants or infrastructure support may benefit from increased aviation funding, but the bill does not mandate how the aeronautics account funds are distributed, leaving local impact uncertain and potentially uneven.
Local GovernmentLean peopleRef: Sec. 2(9)(b), Sec. 3(2)Aircraft fuel distributors and terminal operators may face administrative adjustments to billing and reporting systems to comply with new deposit rules, though the bill explicitly retains existing collection and reporting procedures, minimizing disruption.
Business & EmploymentRef: Sec. 2(9)(b), Sec. 2(9)(c), Sec. 3(b)Retail sales and use taxes on aircraft fuel remain in the general fund, so consumers and businesses paying those taxes see no direct financial change—however, the bill’s framing as a “dedicated” aviation fund may obscure the fact that general-fund sales taxes still apply, potentially misleading stakeholders about overall tax burden.
FinancialRef: Sec. 4(3)
Who Is Most Affected
State aviation agencies (e.g., Washington Aviation Commission) gain dedicated, predictable funding for airport safety, infrastructure, and planning—positive impact.
Aircraft fuel distributors and terminal operators face minimal administrative changes, but may need to update invoicing to reflect tax deposit changes—neutral to slightly negative impact.
Private pilots, flight schools, and aviation businesses benefit from improved infrastructure and safety programs, though fuel prices may not change directly—positive impact.
The state general fund and related accounts (oil spill response, pollution liability) lose dedicated revenue, potentially weakening environmental emergency response capacity—negative impact.
Local governments and port districts with airports may benefit from improved aviation funding, but without allocation mandates, benefits are uncertain—mixed impact.