City, county and state entities
Sales tax is due on sales of vessels to the state of Washington, its departments and institutions and to counties, cities, school districts and all other municipal subdivisions of Washington. There is no B&O tax deduction for these types of sales.
Reference: WAC 458-20-189
Sales tax is not due when the sale of a vessel or parts is made directly to the federal government, its departments, institutions and instrumentalities, or agencies directly operated and controlled by the federal government. There is no B&O tax deduction for these types of sales.
The sales tax exemption doesn’t apply to sales to institutions chartered or created under federal authority but not directly operated and controlled by the government for the benefit of the general public.
Sales to federal employees or representatives are subject to the sales tax even though the federal government may reimburse them for all or part of such expenses/purchases incurred. (See also Exemptions, Military.)
Reference: WAC 458-20-190