BP BHEAD INT H

AN ACT Relating to a use tax exemption for vessel manufacturers and dealers; and adding new sections to chapter 82.12 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.12 RCW to read as follows:

(1) The tax imposed under RCW 82.12.020 shall not apply to the following uses by manufacturers of vessels as defined under RCW 88.02.010:

(a) Any activities to test, set-up, repair, remodel, evaluate, or otherwise make a vessel seaworthy, to include performance, endurance, and sink testing, if the vessel is to be held for resale;

(b) Any training activities of a manufacturer's employees, agents, or any other persons involved in the development and manufacturing of the manufacturer's vessels, if the vessel is to be held for resale;

(c) Any activities to promote the sale of the manufacturer's vessels, to include photograph and video sessions to be used in promotional materials; traveling to and attending vessel related events for the express purpose of displaying a manufacturer's vessels;

(d) Any vessels loaned or donated to a civic, religious, nonprofit, or other organization for continuous periods of use not exceeding seventy-two hours;

(e) Transporting, displaying, or demonstrating any vessel at a wholesale or retail vessel show;

(f) Delivery of a vessel to a buyer, vessel manufacturer, registered vessel dealer as defined in RCW 88.02.010, or to any other person involved in the manufacturing or sale of that vessel for the purpose of the manufacture and sale of that vessel; and

(g) Displaying, showing, and operating a vessel for sale to a prospective buyer to include the short-term testing, operating, and examining by a prospective buyer.

(2) Subsection (1) of this section shall apply to any trailer or other similar apparatus used to transport, display, show, or operate a vessel.

NEW SECTION. Sec. 2. A new section is added to chapter 82.12 RCW to read as follows:

(1) The tax imposed under RCW 82.12.020 shall not apply to the following uses by registered vessel dealers as defined under RCW 88.02.010 of vessels as defined in RCW 88.02.010:

(a) Any activities to test, set-up, repair, remodel, evaluate, or otherwise make a vessel seaworthy, if the vessel is held for resale;

(b) Any training activity of a dealer's employees, agents, or other persons involved in the sale of the dealer's vessels, if the vessel is held for resale;

(c) Any activities to promote the sale of the dealer's vessels, to include photography and video sessions to be used in promotional materials; traveling to and attending vessel related events for the express purpose of displaying a dealer's vessels for sale, provided it is displayed on the vessel that it is, in fact, for sale and the identification of the registered vessel dealer offering the vessel for sale is also displayed on the vessel;

(d) Any vessel loaned or donated to a civic, religious, nonprofit, or other organization for continuous periods of use not exceeding seventy-two hours;

(e) Transporting, displaying or demonstrating any recreational vessel at a wholesale or retail vessel show;

(f) Delivery of a vessel to a buyer, vessel manufacturer, registered vessel dealer as defined in RCW 88.02.010, or to any other person involved in the manufacture or sale of that vessel for the purpose of the manufacture or sale of that vessel; and

(g) Displaying, showing, and operating a recreational vessel for sale to a prospective buyer to include the short-term testing, operating, and examining by a prospective buyer.

(2) Subsection (1) of this section shall apply to any trailer or other similar apparatus used to transport, display, show, or operate a vessel, if the trailer or other similar apparatus is held for resale.

NEW SECTION. Sec. 3. A new section is added to chapter 82.12 RCW to read as follows:

If a vessel in a vessel dealer's inventory, under chapter 88.02 RCW, is used for personal use, then the user of that vessel shall pay a use tax based on the reasonable rental value of the vessel used.