Boats sold to nonresidents

From the 2024 DOR Tax Exemption Study

3/25/25, 3:14 PM Vessel brokers and dealers Commercial deep sea fishing is fishing done for profit outside the waters of the state of Washington. It excludes sport fishing, operating charter boats for sport fishing, kelping, purse seining and gill netting as these fishing methods can be performed only within Washington waters. Reference: WAC 458-20-176 Sales tax exemption Sales tax does not apply to sales of watercraft or component parts, labor and services for constructing, repairing, cleaning, altering or improving vessels primarily used in conducting commercial deep sea fishing. Income from these sales is subject to B&O tax under the retailing of interstate transportation classification. Component parts Component parts include all types of tangible personal property which are attached to or a part of the watercraft. They includes dories, gurdies and accessories, bait tanks, baiting tables and turntables and spare parts designed for ultimate attachment to the watercraft. Equipment or furnishings not permanently attached to the vessel (i.e., bedding, utensils, fishing nets, hooks, ice, floats, and hand tools) are not eligible for the exemption. Documenting an exempt sale Sellers o