Sales and Services Provided on Navigable Waters

Federal law prohibits taxing fees charged for traveling on navigable waters. This includes activities such as:

  • Lake cruises
  • Jet boating trips
  • Rafting
  • Fishing excursions
  • Parasailing

Tangible personal property

The sale of tangible personal property separately stated from cruise or trip fees is taxable. Examples include:

  • The portion of a fee for food or beverage sales while on a dinner cruise
  • Sales of tangible personal property that occur while on navigable water (e.g., clothing, souvenirs, food, rental of fishing equipment)

Renting out tangible personal property without supplying an operator is a bare rental, not a travel activity. Collect sales tax on the bare rentals of all watercraft. See Renting and Leasing.


  • Boats
  • Canoes
  • Kayaks
  • Paddleboards
  • Personal watercraft (e.g., Jet Ski®)
  • Safety equipment
  • Diving equipment