Ships under construction

From the 2024 DOR Tax Exemption Study

84.36.079 - Ships under construction Description Vessels able to carry more than 1,000 tons that are under construction and materials and parts held by the builder at the construction site for use in these vessels are exempt from property tax. Purpose Improves the competitive position of shipyards in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of A full repeal of this exemption would have no fiscal impact or shift on state or local exemption property taxes as everything covered under this exemption is also exempt as business inventory. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - All assets exempt under this statue are also exemption as business inventory. Data Sources - Internet search for ship builders in Washington - Survey of county assessor offices Additional Additional Information Information Category: Business Year Enacted: 1959 Primary Beneficiaries: Owners of vessels under construction Taxpayer Count: 0 Program Incons