Ferry boat construction and repair

From the 2024 DOR Tax Exemption Study

82.08.0285; 82.12.0279 - Ferry boat construction and repair Description Sales tax does not apply to sales of, or charges made for constructing and improving, ferry boats for the state of Washington or local governments. Use tax does not apply to labor and services rendered to improve such ferry boats. Purpose Support state and local governments by reducing the cost of building or repairing ferry boats. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $17.910 $17.910 $17.910 $17.910 Local Taxes $8.070 $8.070 $8.070 $8.070 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $16.420 $17.910 $17.910 Local Taxes $0.000 $7.400 $8.070 $8.070 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - No growth rate is assumed, as the data are volatile. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Washington Department of Transportation, Vessel capital investment Additional Additional Information Information Category: Govern