Purchases - watercraft and component parts

Generally, commercial fishing operations must pay retail sales or use tax on purchases of watercraft, component parts, and repairs. Use tax applies when sales tax was not paid at the time of purchase.

Commercial deep sea fishing vessels

Retail sales tax and use tax do not apply to sales of the following when primarily used in conducting commercial deep sea fishing operations:

• Watercraft.
• Component parts of watercraft.
• Labor and services for constructing, repairing, cleaning, altering, or improving the watercraft.

To qualify for the exemption, the buyer must give the seller a properly completed Buyer’s Retail Sales Tax Exemption Certificate.

This exemption does not apply to rentals of such vessels.

Definitions

Component part includes tangible personal property that is attached to or part of the watercraft. Component part does not include consumable supplies, equipment, or furnishings of any kind that are not attached to the watercraft.

Commercial deep sea fishing means fishing done for profit outside the territorial waters of the state of Washington. It does not include sport fishing or the operation of charter boats for sport fishing. The phrase also does not apply to fishing methods that can only be legally performed in Washington waters: kelping, purse seining, or gill netting.

Watercraft means every type of floating equipment that is designed for carrying fishing gear, fish catch, or fishing crews.