General Washington State Boat Tax Question

[NorCal]

I am doing research on moving up to Washington and am curious about the boat taxes. In California we have sales tax when purchased and property tax that is owed on the boat annually. My boat is documented so no CF registration.

Property tax is significant at 1.4% of current value in CA.

I have looked at the Washington State Department of Revenue and found there is an excise tax of.5%. does this apply to documented vessels as well and is it owed annually? Also, is there a property tax owed in Washington and do you need a state registration on top of the federal documentation? Are there any other boat taxes in Washington.

Any help would be greatly appreciated.

Thanks

John

 

[baz]

In WA state:

1) Sales tax levied on boat purchase is around 10% but varies a bit depending on the location of where the sale takes place. In my area it's 10.3%. If you trade in a boat the trade in value is subtracted from the new boat purchase price and the sales tax is based on the difference.

2) Regardless of a boat being Certified with USCG (COD documented) WA state requires the boat to be registered but no boat Title is created for the boat as the COD supersedes this requirement. The COD annual fee is I believe $26. If boat is COD then the WA state registration number need not have to be placed on the boat's hull.

3) WA state applies a annual excise tax (boat's registration) due each year by June 30th. The registration provides two stickers for port and starboard applications. The fee comprises of
a) Filing fee
b) License fee
c) Water craft excise tax (this is the biggest cost)
d) License service fee
e) Derelict vessel/invasive species removal fee

Examples for the WA state annual registration excise cost...

1) This is what I paid for my 2010 R25 Classic for 2015-2016 taxable year -> $448.25 where the Watercraft excise tax was $428.00. In 2009 when I purchased the R25 Classic boat in 2009 the WA state charged me $740.25 for its registration.

2) This what I paid for my 2018 R27/OB in Aug of 2017... $962.24, and for June 30th 2018 I had to pay $881.64 with $856.39 being the Watercraft excise tax fee.

3) This is what I paid for my 2016 R21 EC for 2016-2017 year... $246.25 with $221.00 being the Watercraft excise tax fee.

N.B.
The WA watercraft excise tax is calculated at one-half of one percent (0.5%) of the fair market value of your vessel or the purchase price if it reflects fair market value.... for boats 16 feet and over or equipped with a motor capacity of more than 10 HP.

Also, review this -> https://dor.wa.gov/doing-business/b...-and-dealers/tax-responsibilities-boat-owners

 

[NorCal]

Barry, Thank so much for your detailed explanation and examples. Regardless, fees for Washington will be less than California which is one of the many reasons we are looking to move.

On a similar note, do you know how vehicle registration fees are calculated? Once again I looked online, but it wasn't completely clear on what the totals would be.

Looking at my 2005 F350 valued at around $20,000 it looks like annual registration would probably be under $200.

Registration $33
Excise $20k value) $20
Service Fee $ 5
Weight Fee $100 (Estimate) web said 30 to $100 for most vehicles.
Plate Fee $32.75
Total $190.75

Does that seem to be in the ballpark?

Thanks

John

 

[Mr. T]

Boy we have a great deal in Michigan, R21EC, 3 Year Registration $115.00 for a length of 21' to 28' , Trailer is a one time $75.00 fee, never have to register again.

Boats are based on length and the most expensive 3 year registration is $448.00 for a 50' boat or longer.
No other taxes are ever due.

Very inexpensive in my opinion.

 

[baz]

Barry, Thank so much for your detailed explanation and examples. Regardless, fees for Washington will be less than California which is one of the many reasons we are looking to move.

On a similar note, do you know how vehicle registration fees are calculated? Once again I looked online, but it wasn't completely clear on what the totals would be.

Looking at my 2005 F350 valued at around $20,000 it looks like annual registration would probably be under $200.

Registration $33
Excise $20k value) $20
Service Fee $ 5
Weight Fee $100 (Estimate) web said 30 to $100 for most vehicles.
Plate Fee $32.75
Total $190.75

Does that seem to be in the ballpark?

Thanks

John

The only addition I would add for your F350 is if you relocated to a Seattle area that's within the RTA (Regional Transport Authority) area. This can add considerable RTA Excise tax cost to vehicle's annual registration. As an example for my 2017 Prius I pay a RTA fee of some $304 for the RTA fee just because I live just a few feet within the RTA area. Typically the RTA area can be assessed based on the postal ZIP code.... but note some ZIP codes can be split between RTA and non-RTA area. I consider this RTA tax to be excessive IMO, but what can one do.... maybe I should live on my boat instead. :lol:

 

[NorCal]

Thanks for that info. I would not of known about that. We are looking to be a bit farther north closer to Anacortes. It looks like that is out of the area.

Good thing they don't charge that RTA tax on the boat!!

 

[SgtAlf]

Please don't let NJ see this post and get more tax ideas. The sales tax in NJ is 7%, but for a new boat purchase the sales tax is 3.5%, Annual registration is under $100 par year. On water gas is running $3.60ish, on land $2.40ish per gal.
Back in 2011 I was given a company car purchased and registered in GA. When that registration expired I had to register same in NJ. NJ tried to charge me 7% sales tax. I refused to pay, explaining the same owner (Glock Inc.) still owned the car, and had already paid sales tax in GA. After a few DMV types huddled for a bit they came back and I won, no sales tax. I often wondered if I moved to another state would they try to charge me sales tax on my boat/pickup that I didn't purchase in the new state, and already paid sales tax in NJ. Sounds like double taxing to me.

 

[SgtAlf]

P.S. When I purchased my R-23 in MD, MD did not charge me sales tax as I was not a resident of MD.

 

[scross]

If you moved to Oregon and used boat in WA waters less than 30 days a year you have no sales tax on purchase of boat, titling and 2 year stickers for about $200 then renewals run about $150 for 2 years...Very low sales tax on trucks (0.5% I believe) and very low registration fees after that. We launch in Bellingham, WA and cruise into Canada and never come close to being in WA waters for the 30 days.

 

[knotflying]

Rhode Island - No sales tax on purchase of boat and anything you buy with the boat so if you add on PDF's, anchor gear etc. no tax on them. Registration is reasonable also. I pay on my R-27 $110.50 for a 2 year registration.

 

[snydzy]

Have you ever thought about the tax revenue a boat brings in to a state when it’s purchased, and resold 2 or 3 times (or more) over its lifetime? not just the sales tax, but the registration taxes, usage taxes, title taxes, d.n.r. fees, etc.
It’s astronomical in some cases!

 

[Rocky Lou]

Have you ever thought about the tax revenue a boat brings in to a state when it’s purchased, and resold 2 or 3 times (or more) over its lifetime?

Absolutely, I just registered in California and paid an 'astronomical' 9% sales tax along with a registration fee, which was minimal. I'll need to renew ever 2 years for a $20 fee.

I wasn't aware that USCG documentation was an option at the time, but, think I made the right choice since I understand that I still would pay CA Sales Tax and any other applicable use tax.

Also, I prefer to display CF numbers given the chance than a local official is not fully aware of COD regulations and wants to see my CF number.