SALT Report 3481 – Effective October 1, 2014, a new sales and use tax exemption will be available for vessel deconstruction services.
“Vessel deconstruction: permanently dismantling a vessel, including:
- Abatement and removal of hazardous materials
- Removal of mechanical, hydraulic, or electronic components or other vessel machineryand equipment;
- Cutting apart or disposal, or both, of vessel infrastructure.
- Vessel deconstruction does not include vessel modification or repair.”
Deconstruction services must take place at a qualified deconstruction facility or at a structure over water in which a National Pollutant Discharge Elimination System permit for vessel deconstruction is held. Additionally a Buyer’s Retail Sales Tax Exemption Certificate must be provided to the seller.
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