Vessels under 65 feet in length

From the 2024 DOR Tax Exemption Study

82.16.020(1)(e) - Vessels under 65 feet in length Description Vessels under 65 feet in length, except tugboats, operating upon the waters within the state are subject to the public utility tax at a rate of 0.642%. The public utility tax rate for most other forms of transportation is 1.926%. Purpose Provides tax relief for small vessels transporting persons or goods within Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.039 $0.042 $0.045 $0.047 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.038 $0.045 $0.047 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Linear growth rate of about $430,000 taxable per year based on 5-year average. Data Sources - Department of Revenue, Excise tax data Additional Additional Information Information Category: Business Year Enacted: 1935 Primary Beneficiaries: Water transportation businesses Taxpayer Count: 10 Program Inconsistency: