Vessel deconstruction services

Vessel deconstruction services are not subject to sales/use tax (RCW 82.08.9996, RCW 82.12.9996).

Qualifying deconstruction services:

To qualify for the exemption, the deconstruction services must be performed at either:

  • 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 reporting requirements:

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


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.

For more information, see Special Notice: Vessel Deconstruction-Sales & Use Tax Exemption.