NYBA Members, please see a recap from NYBA Lobbyist Jim Hedrick, on the status of SB5801, now that the State Legislature has adjourned for the year:

"The legislature adjourned Sunday, April 27, but not before passing SB 5801, the transportation revenue bill. The final version SB 5801 did NOT have a luxury boat tax. However, the legislature did pass an additional 0.5% sales and use tax on the selling price, including trade-in value, on all recreational vessels that are subject to the watercraft excise tax.

Senate Bill 5801 at section 201(4) page 20, lines 22-34 states:

(4)(a) Beginning April 1, 2026, in addition to taxes required under this chapter and chapters 82.12 and 82.49 RCW, there is levied and collected an additional tax of five-tenths of one percent on the selling price, plus trade-in property of like kind, for purchased recreational vessels. (b) In the case of a lease requiring periodic payments, the tax is imposed on the fair market value of the recreational vessel at the inception of the lease. (c) The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070. (d) For purposes of this subsection, "recreational vessel" means a vessel as defined in RCW 88.02.310* that is subject to watercraft excise tax under chapter 82.49 RCW. 

*"Vessel" means every watercraft used or capable of being used as a means of transportation on the water, other than a seaplane.

There is similar language at section 202 (6), page 23 lines 25-33 imposing the identical 0.5 percent “use” tax recreational vessels.   

Link to SB 5801 as Passed by the Legislature

Process: SB 5801 now goes to Governor Ferguson for action. Ferguson can sign the entire bill into law (likely), veto the entire bill (un-likely), or partial veto by striking entire sections (possible)."

We will update you if Governer Ferguson vetos the bill, or does a parital veto that would affect our industry.