S-3698               _______________________________________________

                                                   SENATE BILL NO. 4901

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Goltz, Lee, Talmadge, Moore, McDonald and Bottiger

Read first time 1/23/86 and referred to Committee on Ways & Means.

AN ACT Relating to apportionment of the value of ships and vessels for property tax purposes; and amending RCW 84.08.200.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 5, chapter 250, Laws of 1984 and RCW 84.08.200 are each amended to read as follows:

(1) Every individual, corporation, association, partnership, trust, and estate shall list with the department of revenue all ships and vessels which are subject to their ownership, possession, or control and which are subject to ad valorem taxation under RCW 84.36.080, and such listing shall be subject to the same requirements, penalties, and liens provided in chapters 84.40 and 84.60 RCW for all other personal property in the same manner as provided therein.

(2) The department shall assess all ships and vessels and shall certify to the respective county assessors the equalized values thereof, subject to the same rules as other state-assessed properties in accordance with RCW 84.12.370 and 84.16.130 and chapter 84.48 RCW.  In assessing ships and vessels which do not meet the definition of a "steamboat company" under RCW 84.12.200, the value shall be apportioned to this state based upon the following:

(a) Vessels engaged exclusively in foreign commerce shall not have their value apportioned to this state if their presence within the limits of the state is solely for the purpose of taking on or discharging cargo, passengers, or supplies and the length of the stay for this activity is reasonable.  If the stay of the vessel is indefinite, or is maintained for the convenience of the owner or is subjected to local use, the value shall be apportioned to this state based upon the number of days or fraction thereof that the vessel is within the state during the preceding calendar year.

(b) Vessels engaged exclusively in interstate commerce shall have their value apportioned to this state based upon the number of days or fraction thereof that the vessel is within the state during the preceding calendar year, but no value shall be apportioned to this state if the total number of days the vessel is within the limits of the state and is subject to assessment does not exceed one hundred twenty days for the preceding calendar year.

(c) Vessels engaged exclusively in fishing, tendering, harvesting, and/or processing seafood products on the high seas or waters under the jurisdiction of other states shall have their value apportioned to this state based upon the number of days or fraction thereof that the vessel is within the state during the preceding calendar year, but no value shall be apportioned to this state if the total number of days the vessel is within the limits of the state and is subject to assessment does not exceed one hundred twenty days for the preceding calendar year.

(d) Vessels engaged in intrastate commerce or fishing, tendering, harvesting, and/or processing seafood products and seldom leave the limits of the state or leave the limits of the state while navigating the high seas in order to travel between ports of this state and do not require taxable situs elsewhere shall have their total value apportioned to this state.

(e) Vessels which are in this state for the purpose of undergoing repair, alteration, or maintenance or for the purpose of taking on or discharging cargo, passengers, or supplies and the length of the stay for such activity is reasonable shall not be subject to assessment for the number of days, day, or fraction thereof that such activity occurs.  For the purpose of loading and discharging cargo or supplies, a tug and barge combination shall be considered one vessel not subject to assessment.  In addition, vessels registered as historical vessels, whether involved in foreign, interstate, or intrastate commerce, shall not be subject to assessment.

(f) For purposes of this subsection "limits of the state" means Washington state's normal boundaries abutting Canada, Oregon, and Idaho and three miles to the west of Washington's coast line.

(3) Any ship or vessel owner disputing the assessment under this section shall have the same rights of review as any other vessel owner subject to the excise tax contained in chapter 82.49 RCW in accordance with RCW 82.49.060.