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| Migrating Oregon Boater Says Washington Use Tax Is Unfair |
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| Victim Looking for Allies |
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by Joseph Hopkins
Five years ago Roman York moved from Oregon to Washougal, on the Washington bank of the Columbia River. Washougal was close to his wife's teaching job and to the waters of the Columbia River, where the couple swam from their 25' boat. Sad to say, their contentment was not to last.
"Migrating" Vessels
Washington State's Department of Licensing (DOL) viewed York's boat as one that "migrated" to Washington and therefore the vessel must be registered and a "use" tax paid. A number of Oregon boats "migrate" to Washington each year. Brad Benfield from DOL reports that 1,534 vessels migrated from Oregon to Washington in 2009 and generated $607,407 in tax revenue for the Evergreen State. The total number of vessels registered in Washington in 2009 was 286,597.
Washington Reclaims Lost Sales Tax
According to the DOL website "…goods and services purchased for use in Washington State are subject to sales tax or "use" tax, but not both." The use tax is employed when "…Goods are purchased in another state that does not have a sales tax or a state with a sales tax lower than Washington's. For example, items you purchase in Oregon that are used in Washington are subject to use tax." Oregon, Alaska, Delaware, Montana, and New Hampshire are the only states without sales tax.
The Washington state use tax rate is .065. Thus, the state would collect $1,300 on a $20,000 boat, and $6,000 on a $100,000 vessel. County and city taxes add to the boater's bill.
York Objects on Three Principles
In a time-honored American tradition, York objects to paying the tax and he is looking for others to join him in opposing Washington's tax on migrating boats, RVs, travel trailers and other items he has been told are considered "luxuries." York claims that paying Washington's use tax amounts to "double taxation" that creates an obstacle to a citizen's freedom of movement from state to state. York also says that Oregon, in effect, taxes boats when it taxes the income of boat owners. He has already paid Oregon's income tax and being forced to pay Washington's boat tax means the government is demanding double taxation. Finally, York maintains that the boat is not a luxury but a necessity because boating is essential to the couple's maintenance of positive physical and mental health--both are avid Columbia River swimmers.
No Response from Elected Officials, Change of Plans
York made his case in writing in two letters to Washington Governor Christine Gregoire and in emails to State Senator Jim Honeyford, and State Representatives Bruce Chandler and David Taylor. No elected official responded. York changed his plan and now hopes to cultivate an interest group of like-minded boaters.
Maryland Court Strikes Down Boat Tax
According to BoatU.S.Magazine, May 2005, page 14, the Maryland Court of Appeals struck down that state's 5% sales/use tax as applied to boats that migrated into Maryland waters. A Connecticut boater who moored his 58-foot Spindrift part-time in Maryland and was presented with a $14,304 tax bill brought the case. BoatU.S.Magazine went on to state that Maryland had collected about $25 million per year in boat taxes with "…about half coming from boats bought out of state."
According to the website www.boatinglaw.com, "For a $100,000 boat, the (Maryland) assessment is an unexpected bill for 5 percent of the value ($5,000) plus a 10 percent penalty ($500) plus interest running at 18 percent from the date that the boat became taxable, up to three years."
Looking for Allies
Roman York presented his case to the Columbia River Yachting Association (CRYA) at their March 16, 2010, meeting at the Portland Yacht Club (PYC). York appealed for help in finding others who would work to educate the public and fight to end Washington's tax on "migrating" Oregon boats. Interested persons can reach York by phone or email
360-835-7418
Roman-Gail@att.net |
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