Boats sold to nonresidents

From the 2024 DOR Tax Exemption Study

82.08.0266; 82.08.02665 - Boats sold to nonresidents Description The sale of watercraft to nonresidents, for use outside of Washington, is exempt from sales and use taxes, even when delivered in Washington, if the craft meets one of the following: - Is registered with the U.S. Coast Guard. - Is registered by the state of principal use according to the Federal Boating Act of 1958. The qualifying craft must not be used within Washington for more than 45 days. Purpose Allowing the buyer to take delivery in Washington without incurring sales and use taxes helps to encourage purchases by nonresidents and foreigners. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.177 $3.296 $3.414 $3.537 Local Taxes $1.429 $1.482 $1.535 $1.591 Repeal of Repealing this exemption would not increase revenues. Nonresidents would likely exemption take delivery outside of Washington or purchase the watercraft outside of Washington. Potential ($ 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repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions If this exemption is repealed, then nonresidents would either purch