Commercial Vessel Tax

What is the commercial vessel tax?

Commercially operated vessels exempted from the watercraft excise tax are subject to the state personal property tax levy. Vessels used exclusively for commercial fishing purposes and U.S. Coast Guard documented vessels used primarily for commercial purposes such as charter and time-share boats, tugs and barges are subject to this tax. The tax is owed for as long as a vessel is commercially registered.

What rate do I pay?

Each January the Department of Revenue (DOR) mails a Commercial Vessel Property Tax Notice of Value to each vessel owner showing the current market value. Vessel owners may be eligible to apportion the assessed tax based on the number of days the vessel was located outside of this state.
The tax rate is limited to no more than $3.60 per one thousand dollars ($1,000.00) of market value. Commercial vessel owners must also pay a derelict vessel removal fee of $1 per foot of vessel length. This fee is collected at the same time as the personal property tax and doesn’t apply if no personal property tax is due.

How do I pay the tax?

DOR bills and collects the tax. The tax is based on who owns the vessel on January 1 of a given year, known as the assessment year. In the year following the assessment year, the vessel owner is mailed a tax statement during the Month of March. Full payment is due by April 30.
Payment may be made by check via mail or at a field office location.  Payment may also be made online at  

What are the funds used for?

Funds are distributed to the state general fund.