April 11, 2007

OLYMPIA – Revenues from an excise tax on watercraft vessels will now be used to directly benefit recreational boaters in Washington state.  Legislation sponsored by Rep. Bill Fromhold (D – Vancouver) creates a Boating Activities Account into which the funds will be deposited.  The Senate approved the bill, HB 1651, in a unanimous vote yesterday.

Boat owners in Washington state currently pay a watercraft excise tax of .05 percent on the fair-market value of their vessel or $5, whatever is greater. Until now, the monies collected from this tax have been deposited in the state’s General Fund.  Boating interest groups have pushed for the revenue to instead go to fund boating programs that encourage safety, promote environmental efforts, and improve water access. The House approved the legislation last month.

"Boating is a vital part of our state’s economy," Fromhold said. “This bill will provide grants to organizations developing projects to improve the boating experience in Washington.  It also provides funds to local law enforcement agencies.”

If revenue from the watercraft vessel excise tax is equal to or less than $2.5 million in a fiscal year, 80 percent will be used for boating activities and 20 percent for grants. Revenue collections above $2.5 million will be divided between boating activities and grants under the guidance of a Boating Activities Advisory Committee.

“It’s a much-needed boost for local governments, providing funds based on actual need,” Fromhold said.

The new system will be effective 90 days after adjournment of the legislative session.

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Contact: Rep. Bill Fromhold (360) 786-7924

Media Staff Contact: Jennifer Zahn Spieler (360) 786-7201

Link to House Bill 1651:

http://apps.leg.wa.gov/billinfo/summary.aspx?year=2007&bill=1651

Link to Rep. Fromhold’s website and print-quality image:

http://www.housedemocrats.wa.gov/members/fromhold/

Radio and TV News Directors:  To obtain broadcast-quality audio on this issue, or to arrange for TV or radio interviews, please contact Caucus Broadcast Coordinator Dan Frizzell at frizzell_da@leg.wa.gov or (360) 786-7208.