A tax rule imposed by the state of Washington on corporate-owned yachts may be costing the state more money than it makes from it.
If a ship stays in Washington for more than 60 days, a tax is levied upon the boat that is 10% of its value. The problem with this law is twofold. Many boats, which could have been repaired or serviced by marine-related firms in Washington, leave the area before having to pay the tax.
It is a double-whammy, as the state receives no tax money and private companies miss out on business opportunities.
….This is not the only option for increasing revenue from these boats. Florida taxes every yacht, but caps the tax at $18,000, which means the bigger the boat, the better the deal. Florida assumed it would lose money on the tax cap, but so many yachts registered in Florida that the state gained tax revenues. Maryland is trying this now too.