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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.
