Hebert Research Discovers Leaking State Tax Revenue

SEATTLE - Aug. 28, 2015 - PRLog -- Bellevue based CEO Jim Hebert of Hebert Research (http://hebertresearch.com/contact-hebert-research/) continues to discover Washington State tax revenue leakage. With the recent passing of Bill Boeing Jr. (http://seattletimes.com/html/businesstechnology/2025417529_billboeingjrxml.html), he left behind the family’s 125 foot yacht built in Canada by the Boeing Aircraft in 1930. Currently the yacht is owned by Gordon Levitt of Vancouver, and brokered by Terry Cooke, partner of Emerald Pacific Yachts of Seattle. It is very unlikely the vessel will be moved to Washington state waters.

The historical record is important to learn because this was the first manufacturing of Boeing outside of Seattle. According to Rod McClure in Classic Wooden Yachts of the Northwest (http://www.amazon.com/Classic-Wooden-Yachts-Northwest-McClure/dp/1570612307), in 1929 Boeing purchased a Vancouver based boat building company called Hoffar-Beeching. From that point on, thousands of Washington state jobs were lost and replaced with workers from Vancouver, Canada. The new company of Boeing with Washington State investment capital had then established Boeing Aircraft of Canada, and it is one of the many marine boat manufacturing centers who have left the state.

Based on the marine logs, the Boeing yacht called Taconite (http://www.taconiteclassicyachtcharters.com/history.html) has remained in its port of call of Vancouver, Canada. The present day market value of the yacht is $2.49 million and because it was stationed in Canada, the Washington State boating tax was able to be avoided. What this means is that for 85 years, the owner did not pay the Washington State tax which based on the value of the yacht, would have been $317,006 plus another $31,747,500 over the this period for maintenance—that is equivalent to the salary of 1058 jobs in Canada.

But this is just one of a thousand yachts according to Hebert Research’s marine census, that are owned by Washington state residents but remain moored in the great Vancouver area, including Sidney and other small Canadian ports, because of the onerous state tax policy. This is the opposite of other states such as Florida which have strong resident based marine ports.

Based on the findings of Hebert Research (http://hebertresearch.com/contact-hebert-research/contact...), the marine economic impact has a realistic potential of $32.1 million per year in economic spending, $47.1 in total economic activity, and sporting 370 jobs—many of which could be provided in areas of the state where they are still important.

At the 2015 Marine Economic Forecast, Jim Hebert reported to industry leaders and members of the Washington State Legislature that “this year’s Marine Tourism bill is based on good economic positivity—that which is fair, just, and right.”

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