Vessel deconstruction

From the 2024 DOR Tax Exemption Study

82.08.9996; 82.12.9996 - Vessel deconstruction Description Sales and use taxes do not apply to sales of vessel deconstruction performed at a qualified vessel deconstruction facility or at an area over water that has been permitted under section 402 of the clean water act of 1972 for vessel deconstruction. This exemption expires January 1, 2025. Purpose To decrease the number of abandoned and derelict vessels in Washington by lowering the cost of deconstruction. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.050 $0.029 $0.000 $0.000 Local Taxes $0.020 $0.010 $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 $0.025 $0.000 $0.000 Local Taxes $0.000 $0.010 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 6 months of collections in fiscal year 2025 due to the incentive expiring on January 1, 2025. - Annual vessel deconstruction costs are extremely varied therefore average amount used to calculate impact. - Local revenue estimates use the statewide average local sales and use taxes ra