Heads Up for Those with Boats in Washington State

Heads up Washington State boaters! They are looking for tax and back money!

2014 Legislation-Derelict Vessels was implemented on June 12, 2014.

On June 6, 2014 every private and public moorage which includes Marinas, boat houses, yacht clubs, harbors, docks, landings, resorts and ports in the State of Washington received a letter from the Department of Revenue. Effective July 1, 2014 each marina and yacht club which has long term moorage (defined as 30 days or more) is to gather and report the following to the department:

1. The name and legal owner of the vessel
2. Local Contact person for the vessel to include phone and physical address
3. Owners phone number and address
4. Vessel’s HIN
5. Vessel USCG numbers if applicable
6. Vessel’s home port
7. The date on which the moorage began
8. Vessels country or state registration and registration numbers
9. Proof of vessel registration, a written statement of the moorage lessee’s intent to register the vessel, or exemption affidavit certifying that the vessel is except from state registration requirements.

A moorage provider is required to maintain these records for two years and upon request from Department of Revenue or the Department of Natural Resources or their agents the moorage provider must surrender such documents and if requested be provided access to the moorage for verification and inspection of said vessels

I am currently trying to get the letter scanned in a PDF document. If you want a copy PM me with your email address and I will send it to you.

Sounds like the Mexican requirements. Wonder if Latitude 38 will be making an extended trip to WA.

Washington is tough on transients with their registration requirements. We had to consider their rules in all our planning. Much more difficult than California.

Sure a lot of work for the marinas.

The tax man is calling! A lot of boats in Washington are registered in Oregon or other states. These folks now will have to pay back taxes. For those that don't want to register their boat in WA, there is a "user fee" to boat in WA waters. How can that be Constitutional?

Alaskan Sea-Duction said:

The tax man is calling! A lot of boats in Washington are registered in Oregon or other states. These folks now will have to pay back taxes. For those that don't want to register their boat in WA, there is a "user fee" to boat in WA waters. How can that be Constitutional?

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Well, a visiting boat that is registered elsewhere is exempt for 60 days. And it is one of the same problems Mexico was dealing with and Washington wants people to follow their law. We're certainly making sure we don't exceed 60 days. But with the laws of various states, one can find themselves registering in multiple states within the same year.

As to user fees, a prime example and maybe the oldest is toll roads.

We are carrying a monstrous stack of documentation for the states and countries we'll be passing through.

However, if you moor in the State of Washington for 30 days or more, the moorage operator is required to report your information to the tax man.

Big differance in that most navigable water ways in Washington are "federal" water ways....

The Washington tax laws are why a very nice couple I met recently keep their boat in Sidney BC.

We're planning ours exodus from Alaska. We do not intend to pay Washington tax which not only includes property tax, it includes 7% "sales tax" for boats kept in their state more an 120 days.

I have no problem paying a fee to use a states waterways and facilities. I don't like it because as a "tourist" I am helping the state by spending my money there, but I will not register my boat or pay sales tax for a boat I already own to anything but my home state.

ksanders said:

The Washington tax laws are why a very nice couple I met recently keep their boat in Sidney BC.

We're planning ours exodus from Alaska. We do not intend to pay Washington tax which not only includes property tax, it includes 7% "sales tax" for boats kept in their state more an 120 days.

I have no problem paying a fee to use a states waterways and facilities. I don't like it because as a "tourist" I am helping the state by spending my money there, but I will not register my boat or pay sales tax for a boat I already own to anything but my home state.

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There are just a lot of areas that having states with varying laws makes no sense and boating is one of them.

We have a US documented boat, but of course only temporary documentation in hand, with a Florida registration, even though the boat hasn't ever been to Florida and will still be months before it is. Use tax paid in Florida as well. Have copies of the various registration and tax laws with us so we can show if necessary why we're not required to pay.

ksanders said:

The Washington tax laws are why a very nice couple I met recently keep their boat in Sidney BC.

We're planning ours exodus from Alaska. We do not intend to pay Washington tax which not only includes property tax, it includes 7% "sales tax" for boats kept in their state more an 120 days.

I have no problem paying a fee to use a states waterways and facilities. I don't like it because as a "tourist" I am helping the state by spending my money there, but I will not register my boat or pay sales tax for a boat I already own to anything but my home state.

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We Alaskans are an independant bunch aren't we. I think it is a move to get more revenue by the state. Just know that if you boat is moored for 30-days or more, the moorage provider is reuired to report your boat information to the state...

You can look for more tax grabbing schemes. Some are not really taxes but assessments. States are looking to boats to make a big hit. Virtually every small town is taking portions of Interstate highways into their city limits. Then they buy extra police cars to go out and bring in the money. They are creating speed traps. Very profitable.

A few areas on the east coast understand that in the long run it could cost them money. Areas like Hampton, VA along with Beaufort County, SC and the area around Myrtle Beach, SC do not want to the lose the business. In fact they want to attract it. Florida recently made a big move with their maximum sales tax on large boat purchases. Florida also does not assess property taxes, and only requires an annual registration fee. FL also allows boats to stay in the state for yard work without registering.

Low taxes are good for business, and are a win for the state. However, many states don't get it.

Glad I'm reading this, we where considering moving the boat to Washington. Do these charges extend to boats kept on trailers?

CPseudonym said:

Glad I'm reading this, we where considering moving the boat to Washington. Do these charges extend to boats kept on trailers?

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Its a little tougher to get caught if your boat is on a trailer, so long as it's not somewhere that has to report it.

WA House Bill 2457 is the legislation that AKBASSKING is referring to. I'm in the process of reading it and will list some of the provisions I think are worth noting and writing an email to your WA legislators about.

From what I've read so far...
-The law appears to only apply to recreational vessels longer than 65 feet and more than 40 years old.
-A buyer of such boat is required to have an insurance policy with $300,000 limits and show it to the seller ("transferor") of the boat at the time of taking possession.
-If the transferor doesn't require a copy of the policy before transferring the boat he assumes secondary responsibility for future problems.
-It's a gross misdemeanor to cancel said policy within 36 months unless there is a new policy to replace the old one.
-a database must be created that includes your info if you have ever been convicted of a long list of violations that have to do with environmental issues. If you're on the list you can't buy a vessel longer than 30'.
-If said person buys a vessel longer than 30' the state can seize it.
-If said person tries to remove the vessel from the state, the marina/port/etc. can chain the vessel to prevent it from leaving.
-If the marina/port/etc determines there are fees owed to the marina or if they determine the vessel is a hazard they can put it on shore and store it in a secure facility.
-If said vessel isn't claimed (and all fees paid) within 90 days it is assumed to have been abandoned and can then be sold at auction.


I think that's enough for you to get the idea. Those items above are from the first 8 pages of the bill (there are 35 pages total).

This doesn't apply to many of us, but it does apply to a lot of boats in WA. This is really a draconian law. Oh, and did I mention that it does not apply to commercial vessels. They are the ones that have the highest costs associate with their removal should be become derelict vessels, yet they are exempt.

Please take a minute to write your legislators about this.

GFC

Washington is no better or worse than most states. Over the entire spectrum of vessel taxation and registration, each state has its' plusses and minuses. Yes, WA does charge sales tax on the full purchase price (and use tax on the full value) for boats bought by residents. It also charges and excise tax annually on the depreciated value of the boat. This is a fairly minimal 0.5% (0.005 or $5/1000 of value ) of the value. Non-residents can keep their boats in WA waters for extended periods, if they pay for the privilege. Normally, once a non-resident buys a boat or brings boat into WA, he has 45 days of use available. However, one can purchase a permit and extend that period up to 12 months. The cost is $500 for boats <50' and $800 for boats over >50'.

A lot of complaints here about the concept of Use Tax in general. It does not apply only to boats or large ticket items purchased out of state. In virtually all states, use tax applies to all purchases that would otherwise be subject to sales tax if purchased in-state. Complaints about boats and cars arise simply because the registration process in states provides the state with the immediate ability to collect. In reality, when you buy online and are not charged sales tax by the vendor, i.e. Amazon, you owe your state use tax on that purchase. Hence the ongoing debate between brick & mortar and online sellers regarding collection of sales tax. States are losing $billions in sales tax.

GFC, the letter the yacht club recieved does NOT state the requirement is for boats larger than 65ft. I'll send it to you as soon as I get it scanned. Trying to find a scanner. If I can I will also post it.

THD said:

Washington is no better or worse than most states. Over the entire spectrum of vessel taxation and registration, each state has its' plusses and minuses. Yes, WA does charge sales tax on the full purchase price (and use tax on the full value) for boats bought by residents. It also charges and excise tax annually on the depreciated value of the boat. This is a fairly minimal 0.5% (0.005 or $5/1000 of value ) of the value. Non-residents can keep their boats in WA waters for extended periods, if they pay for the privilege. Normally, once a non-resident buys a boat or brings boat into WA, he has 45 days of use available. However, one can purchase a permit and extend that period up to 12 months. The cost is $500 for boats <50' and $800 for boats over >50'.

A lot of complaints here about the concept of Use Tax in general. It does not apply only to boats or large ticket items purchased out of state. In virtually all states, use tax applies to all purchases that would otherwise be subject to sales tax if purchased in-state. Complaints about boats and cars arise simply because the registration process in states provides the state with the immediate ability to collect. In reality, when you buy online and are not charged sales tax by the vendor, i.e. Amazon, you owe your state use tax on that purchase. Hence the ongoing debate between brick & mortar and online sellers regarding collection of sales tax. States are losing $billions in sales tax.

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mmm Not all states. Alaska charges $24 for a 3 year registration and $0 if it is documented with the USCG. Washington is gorging its boat owners.

CPseudonym said:

Glad I'm reading this, we where considering moving the boat to Washington. Do these charges extend to boats kept on trailers?

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When we had our boat in Panama City Beach (FL) and resided in Alabama, the boat was registered in Alabama. We trailered it and oddly the trailer didn't need tags if teh boat (either on or off the trailer) was current.

I suspect that either the boat or trailer needs to be tagged/registered.

In Washington, what's to keep someone from moving their boat every few weeks/months to avoid reporting? Seems like a good middle-man business to get into.

I seem to remember Maryland doing something like this a while back. Taxing the boat owners, mostly to get those that say they're registered in....often times an adjoining state, but leave their boat in MD for ever. Don't remember how that played out, but seem to recall that a lot of owners bailed out of MD marinas and took their toys (and money) to their home state.

What they (the states) should do is tax the docking and mooring fees. That'll cover in-state and transients for the exact number of nights used by mariners. Some per foot, per night schema might work. While it won't cover people on the hook, that's most likely a rather small number of people, and I suspect hardly any permanent "resident" boats.

I have the letter in pdf now, so if want a copy, PM me with your email address. GFC, I sent you a copy.

Being a WA State resident for 28 years I can feel your pain but we have no income tax, no oil and some would say, questionable leadership. The sales tax is where the bite is. San Juan County is 8.1% and King County(Seattle) 9.5%. If you go to a state like North Carolina, which has property tax after you paid the sales tax somewhere else, they still get you. When we were in New Bern the rate was close to 1% of the boats value. It forces you to keep moving or pay the tax man. When we left New Bern, we signed out at the city tax office and thanked them.

I don't care for big government and I'm not taking the side of the legislation or attempting to comment on this bills integrity. But I do understand that there is a problem and what they are attempting to accomplish.

How to fairly apply taxes in this state has always been a struggle and dealing with abandoned boats, someone has to pay, there is no free ride? More and more boats are just set adrift or left on beaches, marinas and fiberglass hulls don't disintegrate rapidly.

As a Washington resident, my annual license fees aren't that bad, car is around $40 and boat is about $200. But we also have top flight roads and public marinas and no State income tax.

We are a "sales tax state" and "no state income tax." Oregon next door is the opposite, a "State income tax" with "no sales tax." We're also on the "doorstep" to Alaska and many people live here and work in Alaska. So you see a lot of Alaska and Oregon licensed cars, motor homes, airplanes and boats here that rarely if ever leave the state. Living between Alaska and Oregon there are those who want to take advantage of the different tax laws and become "Tax Evaders." It's a problem for both states.

Unfortunately, real tourists get caught up in the mess and get hassled over their tax status. That part is too bad, but I can also appreciate the state fining one of our Washington residents who purchases and licensed $500,000 motorhome in Oregon and garaged it here.

So how do you apply the tax laws fairly and yet allow for those who are truly "tourist" non residents????

Edelweiss said:

I don't care for big government and I'm not taking the side of the legislation or attempting to comment on this bills integrity. But I do understand that there is a problem and what they are attempting to accomplish.

How to fairly apply taxes in this state has always been a struggle and dealing with abandoned boats, someone has to pay, there is no free ride? More and more boats are just set adrift or left on beaches, marinas and fiberglass hulls don't disintegrate rapidly.

As a Washington resident, my annual license fees aren't that bad, car is around $40 and boat is about $200. But we also have top flight roads and public marinas and no State income tax.

We are a "sales tax state" and "no state income tax." Oregon next door is the opposite, a "State income tax" with "no sales tax." We're also on the "doorstep" to Alaska and many people live here and work in Alaska. So you see a lot of Alaska and Oregon licensed cars, motor homes, airplanes and boats here that rarely if ever leave the state. Living between Alaska and Oregon there are those who want to take advantage of the different tax laws and become "Tax Evaders." It's a problem for both states.

Unfortunately, real tourists get caught up in the mess and get hassled over their tax status. That part is too bad, but I can also appreciate the state fining one of our Washington residents who purchases and licensed $500,000 motorhome in Oregon and garaged it here.

So how do you apply the tax laws fairly and yet allow for those who are truly "tourist" non residents????

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Good post and really can't disagree. There are a lot of Washingtonians that are crapping their drawers right now. Over half of the boats in a yacht club just up river from me have their boats registered in Oregon.

Rambler said:

In Washington, what's to keep someone from moving their boat every few weeks/months to avoid reporting? Seems like a good middle-man business to get into.

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Some of that probably happens, but the state, cities and counties here share in the license tax revenues generated and share information and enforcement.

So if you are lets say. . . . fishing or crabbing and are checked by WDFW and you're on an Oregon licensed boat, registered to you and you present a Washington resident fishing license. . . . there will be "trouble in River City."

Every government, state or country, taxes and they all do it differently. Who is to decide what is fair or not. Mississippi collects big money on car registrations as opposed to other ways. Some car registrations are as much as $500 or $700 or more per year. Because people, especially those living near state lines, would tend to try schemes to register in other states, that is a felony in Mississippi.

Only two things you can be sure of, death and taxes.

Alaskan Sea-Duction said:

GFC, the letter the yacht club recieved does NOT state the requirement is for boats larger than 65ft. I'll send it to you as soon as I get it scanned. Trying to find a scanner. If I can I will also post it.

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Tom, I got a copy of the letter they sent out, but here is the text from the actual bill.....

"

17 NEW SECTION.​

26 the department of revenue upon the payment of any taxes.

Sorry, I had to leave this page to eat dinner.

Tom, I haven't read beyond page 8 of the bill. I will try to find time this weekend to finish it and see what other wonderful gems it contains.

If you want to read it for yourself, go to access.wa.gov and do a search on HB 2457.

Guys, just a reminder to avoid the political in this relevant and interesting discussion concerning boating and taxes. If we can avoid politics, religion, guns and anchors, there won't be a need to edit, delete or move the posts.

Thanks for your help in keeping it on track and within bounds.

The 65' / 21 year old stuff is for the derelicts. It's to prevent someone selling a derelict to a guy in a bar for $5.

The marina registration is different, but something my yacht club already does along with insurance. It's all on automatic reminders, et cetera.

refugio said:

The 65' / 21 year old stuff is for the derelicts. It's to prevent someone selling a derelict to a guy in a bar for $5.

The marina registration is different, but something my yacht club already does along with insurance. It's all on automatic reminders, et cetera.

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Actually what has been happening in Florida is boat deserted at a marina. Marina owner facing huge expense in moving and disposing of it sells it for nearly nothing or even gives it to unsuspecting soul, sometimes by ebay, sometimes Craigslist, sometimes even homeless people. They go to move it, get it to see, it sinks. Now a $500,000 salvage job exists and marina and previous owner got off the hook.

Washington has faced a lot of deserted fishing boats and is spending big money each year to destruct them. Last year three were pulled ashore in Westport, crushed to pieces using track loaders, and put into dumpsters and hauled off.

So if all of this is to minimize derelict boats sunk or washed up in a bog, where's the teeth to put the responsibility on the owner(s) instead of taxpayers? I'd love to see less bones along the shores, but is this going to accomplish that?

Rambler said:

So if all of this is to minimize derelict boats sunk or washed up in a bog, where's the teeth to put the responsibility on the owner(s) instead of taxpayers? I'd love to see less bones along the shores, but is this going to accomplish that?

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I don't think it all is to minimize derelict boats. Plus we're talking multiple sections of the law. Multiple purposes.
-Minimize derelict vessels sold
-Protect purchasers from spending large amounts on boats not seaworthy
-Reduce vessels not seaworthy and insured for liability
-Increase revenues
-Insure compliance with registration laws and tax laws
-Fairness to those who do comply already with laws