If you’re thinking about buying a boat to spend the coming summer on the Columbia River, you have until July 1 to avoid a new state sales tax. 

The Legislature approved the new tax as part of its broad collection of tax increases during the 2025 legislative session. It will charge a 0.5% tax on the retail sale of any recreational vessel in the state. The tax applies to the selling price, plus trade-in property. 

Boat dealers will collect the tax and report it to the state on their excise tax returns. Those buying a boat through a private seller will be required to pay the tax when they register the vessel with the state. 

The state will use revenues generated by the tax to fund a new multimodal transportation account. Those funds are planned to be used for long-range transportation needs that support mass transit, pedestrians, cyclists and ferries.