Boats subject to the personal property tax are listed with and assessed by the Special Programs Division of the Department of Revenue. These vessels are taxed only for the time they are in Washington. Each year, in January the department sends a Watercraft Personal Notice of Value to each vessel owner showing the market value and asking each to report how many days the vessel was in the state the previous year. The department now collects the property tax. In mid February, the property tax statement is mailed to each taxpayer with full payment due by April 30.
Most residents are familiar with sales tax collected by retailers at the time of sale.
Some, however, may not be aware of the use tax. Use tax applies to the use within this state of articles acquired without payment of sales tax. You owe use tax if you acquire your boat without paying sales tax. The intent is that articles purchased for use in this state are subject to sales tax or use tax, but not both. Sales tax is based on the selling price, while use tax is calculated on the value of the boat at the time of first use in Washington.