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Vessel deconstruction services

Vessel deconstruction services are exempt from sales/use tax. This exemption expires Jan. 1, 2025. (RCW 82.08.9996, RCW 82.12.9996).

Qualifying deconstruction services:

To qualify for the exemption, the deconstruction services must be performed at one of the following:

  • A qualified vessel deconstruction facility; or
  • An area over water which has a National Pollutant Discharge Elimination System (NPDES) permit for vessel deconstruction

The buyer must give the seller a Buyer’s Retail Sales Tax Exemption Certificate. The seller must keep a copy of the completed exemption certificate for five years.

Buyer's responsibilities

Buyers must give a Buyer's Retail Sales Tax Exemption Certificate to the seller, who must keep a copy of the completed exemption certificate for five years. 

Buyers who use this exemption must submit a Buyer’s Sales and Use Tax Preference Addendum when they file their next excise tax return online.

Definitions

Vessel deconstruction: permanently dismantling a vessel, including:

  • Abatement and removal of hazardous materials.
  • Removal of mechanical, hydraulic, or electronic components or other vessel machinery and equipment.
  • Cutting apart or disposal, or both, of vessel infrastructure.

Vessel deconstruction does not include vessel modification or repair.

Hazardous materials: includes fuel, lead, asbestos, polychlorinated biphenyls, and oils.

Qualified vessel deconstruction facility: structures, including floating structures, which have a National Pollutant Discharge Elimination System (NPDES) permit for vessel deconstruction.