WASHINGTON, DC, November 11, 2021 — After numerous hearings and constant input from the recreational boating industry, the Washington State Department of Revenue (DOR) finalized the watercraft excise tax depreciation schedule. Approved October 21, the Final DOR Rule, which reflected input from marine industry stakeholders, ultimately places less of a financial burden on boat owners than the originally proposed excise tax schedule.
MRAA joined regional and national groups, such as BoatUS, Recreational Boating Association of Washington, Northwest Marine Trade Association, Washington Retail Association and Washington Maritime Federation, to provide input on the initial proposal. Originally, the proposed depreciation schedule would have put an unfair burden on boat owners and did not reflect national watercraft depreciation averages. Furthermore, boats are the only recreational vehicle subject to a depreciation excise tax in Washington State, already placing an additional financial burden on boat owners.
The final rule, which goes into effect January 1, 2022, reflects significant changes from the initially proposed watercraft excise tax depreciation schedule, due the input provided by MRAA and the coalition affiliates. Recreational boaters in Washington will save money annually with these changes in place, as they will be subject to less and more accurate taxes.
For example, if you own a powerboat more than 30 feet in length, under the current schedule, your Excise Tax for your second year owned would be based on your vessel holding 89 percent of its value. Under the Draft Rule issued in June, that would have gone all the way up to 97 percent. After our unified input, both the Draft Rule issued in July and the Final Rule, reduced that figure to 83 percent. If an owner purchased their vessel for $40,000, under the Final Rule, they would pay a lesser fee of $116. However, under the original rule, they would have owed $178, and under the June Draft Rule, that figure increased to $196.
“As the above example shows, the input by the coalition ultimately resulted in massive savings for the recreational boat owners of Washington,” said Chad Tokowicz Government Relations Manager, Marine Retailers Association of the Americas. “I sincerely thank the members of this coalition for their hard work, and the staff at the Washington Department of Revenue for considering our input and working with us throughout this process.”
About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.
