Economic Development

Sales Tax on boats and airplanes is incorrect now

Reduce sales taxes on aircraft and boats. Currently these are taxed the same as everything else, but they are so portable that many owners leave the state to avoid the tax. It is very simple to register these in another state that has no or very low sales taxes. When this happens, all the businesses that would support these boats and airplanes lose them as customers. No service, storage, maintenance, fuel sales, etc. No sales tax collected for these services, and no jobs in Washington to perform them. The current method costs Washington state lots of tax income because the overall plan is wrong. Florida recently placed a limit of $18,000 on the sales tax on boats as a way to fix this problem. You might say the rich guy who buys a $2,000,000 boat can afford $170,000 in sales tax, and you would be right, he can afford it. But he will not pay it, he will simply license it and leave it in Oregon or British Columbia to avoid the sales tax and then all the future expenses are lost to Washington.

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Idea No. 2397