Boats sold to nonresidents - in-state use permit

From the 2024 DOR Tax Exemption Study

82.08.700; 82.12.700 - Boats sold to nonresidents - in-state use permit Description A sales and use taxes exemption is provided for sales to a nonresident individual of vessels at least 30 feet in length from a Washington dealer if the purchaser of the vessel purchases and displays a valid use permit. The purchaser must provide proof of their current nonresident status at the time of purchase. Additionally, the purchaser must make an irrevocable election to take the exemption authorized. The use permit issued under this statute is valid for 12 consecutive months from the date of issuance and is not renewable. Purpose To increase the time a vessel owned by a nonresident can remain in Washington waters, which encourages purchases of new vessels from Washington dealers and increases tourism in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.729 $0.756 $0.783 $0.811 Local Taxes $0.328 $0.340 $0.352 $0.365 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.688 $0.783 $0.811 Local Taxes $0.000 $0.312 $0.352 $0.365