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New law extends tax exemptions for nonresident-owned yachts

On Behalf of | May 10, 2021 | Maritime And Admiralty Law

On April 4, 2021, Washington Gov. Jay Inslee signed HB 1107 — a law extending tax exemptions for nonresident-owned yachts.

Washington State now will allow nonresident entity-owned yachts to acquire two 60-day permits a year to stay in the state without tax. This is in addition to the 60 days allowed currently. Nonresident entity and individually owned boats will now be treated similarly for the first time.

This law essentially does three things:

  • Creates a framework to sell permits for crewed charters for nonresident owned yachts;
  • Increases the size of all nonresident owned vessels eligible for two 60-day permits per year to include boats up to 200 feet; and
  • Keeps the current rule that boats can return each year, year after year for 60 days (and those days do not need to be consecutive).

Washington State has become a major cruising destination for charter yachts, joining British Columbia and Alaska. The new law will go into effect July 24.