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Old 11-06-2011, 08:50 PM   #41
Join Date: Apr 2009
Posts: 9
RE: Sales Tax Boat Purchase

WA Use Tax for non-resident individual*(corps are subject to different rules) vessel owners can be avoided in two general ways.* Presuming the vessel is purchased in WA it can be left in the state for one year (I think that's the time limit) so long as it is then removed and doesn't return for at least two years.* Certain exemptions have to be filed to put this in play at the time of closing.* Alternatively a vessel can be purchased and removed from the state within 45 days of taking ownership.* Again an affidavit of intent has to be signed at the time of closing.* Subsequent to removal the vessel can return to and be in WA for up to 180 days in any 360 day period and avoid triggering use tax liability so long as the owner purchases a cruising permit for the second and third 60 day periods prior to the expiration of the first 60 day period.* These are purchased through the state licensing side.*

Additionally a vessel can be in WA and not* trigger use tax liability so long as it is in the state exclusively for the purpose of repairs and service.* This is elected through the submission of a Non-Resident Vessel Repair Affidavit.* The affidavit has to specify the organization who is performing the repairs/service along with their WA sales tax number.* During this time it can't be used for personal use - i.e. any "sea trials" must be accompanied by a representative of the repair org.* This affidavit is good for 60 days and extensions can be requested.*

There are bits and pieces of this info, some*case law,*and the NRVRA form on the web if you dig around.*

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Old 11-07-2011, 06:54 AM   #42
Edelweiss's Avatar
City: PNW
Country: USA
Vessel Model: 1976 Californian Tricabin LRC
Join Date: May 2011
Posts: 1,682
RE: Sales Tax Boat Purchase

I stand corrected; for non residents visiting Washington it is 60 days, not 90 days, and the option to purchase additional 60 day permits as Sealegs states below. For current residence, it's 15 days to register.

Trying to get around the sales tax or use tax laws can be tricky. *Sales tax is based on the sales price of the vessel and can be quite a few bucks. But generally the use tax on a used vessel isn't as bad, as the book values they use are pretty low.

From DOL website:

"Fair market value reflects the value of a vehicle according to the retail selling price at the place of use, compared to similar vehicles of like quality or character. The actual selling price may or may not be the same as the average fair market value in cases when an individual sells a used vehicle or vessel"

"Use tax is a tax on items used in Washington when sales tax hasnt been paid. When you purchase a vehicle or vessel from a private party, youre required by law to pay use tax when the vehicle or vessel title is transferred."

'Goods are purchased in another state that does not have a sales tax or a state with a sales tax lower than Washingtons. For example, items you purchase in Oregon that are used in Washington are subject to use tax.Use tax is determined on the value of the goods when first used in Washington. Generally, this is the purchase price. However, a depreciated value may be determined if the goods are used outside the state for a lengthy time before use in Washington by the same person.'

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Old 11-07-2011, 11:29 AM   #43
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City: Springdale, NL
Country: Canada
Vessel Name: Ocean Breeze
Vessel Model: Ocean Alexander 85OA38
Join Date: Oct 2011
Posts: 525
RE: Sales Tax Boat Purchase

Hmmm.... another benefit being up here in the far Eastern Northland where the icebergs roam from time-to-time and the whales and dolphins rule.. zero tax on the purchase of any used vessel.*

Maybe the gov't knows they ding us with so much fuel tax that it pays up for it hahah.

Elwin *

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