Modifying the aircraft fuel excise tax.

2023-2024 Regular Session Introduced by Karen Keiser and 2 co-sponsors

Expands Washington nonresident vessel permits to 201–300 ft commercial/charter vessels, imposes $100 per foot fee for 201–300 ft, and directs revenue to youth swim-lesson grants.

By resolution, reintroduced and retained in present status.

Purpose

SB 5281 amends Washington’s nonresident vessel permit rules to allow larger commercially owned or charter-intended vessels to obtain nonresident vessel permits, adjusts fees for the largest vessels, and directs fee revenue to a youth swim-lesson grant program. The bill aims to accommodate larger visiting commercial/charter vessels (e.g., superyachts) while generating targeted revenue for community swim instruction.

Key provisions

Increases the maximum length for vessels eligible for a nonresident vessel permit (when owned by an entity other than a natural person, or when a nonresident natural person intends to charter with captain/crew) from 200 feet to 300 feet (RCW 88.02.620).

Establishes a permit fee for commercially owned vessels 201–300 feet of $100 per foot of vessel length, effective May 1, 2026. (Until that date, DOL must process applications for vessels over 200 ft as if they were 200 ft.)

Requires the Department of Licensing (DOL) to collect the required fee when issuing permits and to maintain specified records for sharing with the Department of Revenue (DOR) (owner name, hull ID, fee amount, date vessel first entered state waters, permit expiration, etc.).

Adds operational requirements that vessels under a nonresident permit must comply with the quiet sound program and the Department of Fish & Wildlife’s safe whale distance guidelines (Engrossed version).

Directs proceeds from fees paid by 201–300 ft vessels to the Washington State Recreation and Conservation Office to fund a grant program supporting youth swim lessons in overburdened communities.

The permit regime (as modified) and authority for entities to obtain permits expire January 1, 2029.

Who is affected

Nonresident vessel owners that are entities (corporations, partnerships, etc.) and nonresident individuals who plan to charter vessels with captain/crew.

Commercial/charter vessels between 30 and 300 feet in length (the lower 30-ft minimum is unchanged).

DOL and DOR for processing, recordkeeping, and enforcement.

Washington State Recreation and Conservation Office (as recipient/administrator of directed fee revenue).

Potential indirect impacts on local economies (marinas, tourism) and marine wildlife management.

Process & timeline

Permit application rule: nonresident users must obtain a permit on or before the 61st day of use in Washington to remain beyond the initial 60-day exemption; permits are valid for two months.

Effective date of the law: September 1, 2025.

New $100/ft fee for 201–300 ft vessels effective May 1, 2026.

Bill signed by the Governor May 12, 2025; expires January 1, 2029.

No general appropriation in the bill; a fiscal note is available.

Fiscal/policy notes

Expands permit eligibility to larger commercial/charter vessels, likely increasing permit-related revenue.

Fee revenue for the largest new tier is earmarked for youth swim-lesson grants targeting overburdened communities.

Retains existing use-tax and watercraft excise tax mechanics for owners who register vessels in Washington or are found ineligible.

Bill