S-1275               _______________________________________________

 

                                                   SENATE BILL NO. 4235

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Senators Goltz, Lee and McDermott

 

 

Read first time 2/8/85 and referred to Committee on Ways and Means.

 

 


AN ACT Relating to the taxation of food fish and shellfish; amending RCW 82.27.020, 82.27.030, and 82.27.040; reenacting and amending RCW 82.27.010; and creating a new section.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

          NEW SECTION.  Sec. 1.     The fishing industry is a significant component of this state's economy.  To maintain the strength and vitality of the industry, the state is committed to the protection and enhancement of the resources upon which the industry depends.  This contribution takes the form of management and enhancement activities.  Revenues generated by a special tax adopted solely to fund enhancement and management activities provides primary support.  The special tax became effective in 1977 pursuant to chapter 327, Laws of 1977 ex. sess.  Consistent with legislative purpose, implementation of the tax was undertaken by the department of fisheries.  Subsequently, in 1980, the special tax was amended by chapter 98, Laws of 1980 to place implementation of its provisions into the hands of the department of revenue.  This change was adopted primarily for the purpose of utilizing the department of revenue's expertise and offices to implement the provisions of the statute.  The legislature now believes that our initial purpose and intent in adopting the special fish tax statute have not been achieved by the interpretation of the act since July 1, 1980.  The interpretation has also caused unintended and substantial hardship on the fishing industry and has proven counter-productive to the purpose of enhancement.  These events have occurred at a time when the fishing industry is experiencing substantial economic hardships and the resources are threatened with depletion.  The mandatory and curative enactments hereby adopted are intended to clarify the legislature's intent and to provide that the intent be applied retroactively to July 1, 1980.

 

        Sec. 2.  Section 1, chapter 98, Laws of 1980 as amended by section 5, chapter 284, Laws of 1983 and by section 180, chapter 46, Laws of 1983 1st ex. sess. and RCW 82.27.010 are each reenacted and amended to read as follows:

          As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

          (1)  (("Food fish and shellfish" has the meaning ascribed to it by RCW 74.08.011 and includes byproducts and also parts of food fish and shellfish, whether fresh, frozen, canned, or otherwise.)) "Enhanced food fish" includes all species of food fish, shellfish, and anadromous game fish captured within Washington territorial waters and salmon captured in territorial waters of Oregon, Washington, and British Columbia, plus all troll caught Chinook salmon captured in southeast Alaska.

          (2)  "Commercial" means related to or connected with buying, selling, bartering, or processing.

          (3)  "Possession" means the control of enhanced food fish((, shellfish, and anadromous game fish)) by the owner and includes both actual and constructive possession.  Constructive possession occurs when the person has legal ownership but not actual possession of the enhanced food fish((, shellfish, or anadromous game fish)).

          (4) "Anadromous game fish" means steelhead trout and anadromous cutthroat trout and Dolly Varden char and includes byproducts and also parts of anadromous game fish, whether fresh, frozen, canned, or otherwise.

          (5) "Capture" means the act of catching enhanced food fish and securing aboard the harvesting vessel or gear.

 

        Sec. 3.  Section 2, chapter 98, Laws of 1980 as last amended by section 17, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.27.020 are each amended to read as follows:

          (1)  In addition to all other taxes, licenses, or fees provided by law there is established an excise tax on the commercial possession of enhanced food fish((, shellfish, and anadromous game fish)) as provided in this chapter.  The tax is levied upon and shall be collected from the owner of the enhanced food fish((, shellfish, or anadromous game fish)) whose possession constitutes the taxable event.  The taxable event is the first possession in Washington by an owner ((after the food fish, shellfish, or anadromous game fish have been landed)).  Processing and handling of enhanced food fish((, shellfish, and anadromous game fish)) by a person who is not the owner is not a taxable event to the processor or handler.

          (2)  A person in possession of enhanced food fish((, shellfish, and anadromous game fish)) and liable to this tax may deduct from the price paid to the person from which the enhanced food fish((, shellfish)) (except oysters)((, or anadromous game fish)) are purchased an amount equal to a tax at one-half the rate levied in this section upon these products.

          (3) The measure of the tax is the ((price paid by the first person in possession)) value of the enhanced food fish((, shellfish, or anadromous game fish)) at the point of capture.  ((If the food fish, shellfish, or anadromous game fish are acquired other than by purchase or are purchased under conditions where the purchase price does not represent the value of the food fish, shellfish, or anadromous game fish or these products are transferred outside the state without sale, the measure of the tax shall be determined as nearly as possible according to the selling price of similar products of like quality and character under rules adopted by the department of revenue.))

          (4)  The tax shall be equal to the measure of the tax multiplied by the rates for enhanced food fish((, shellfish, and anadromous game fish)) as follows:

          (a)  Chinook, coho, and chum salmon and anadromous game fish:  Five percent.

          (b)  Pink and sockeye salmon:  Three percent.

          (c)  Other food fish and shellfish, except oysters:  Two percent.

          (d)  Oysters:  Seven one-hundredths of one percent.

          (5)  An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (4)  of this section.

 

        Sec. 4.  Section 3, chapter 98, Laws of 1980 and RCW 82.27.030 are each amended to read as follows:

          The tax imposed by RCW 82.27.020 shall not apply to:  (1) Enhanced food fish ((or shellfish)) previously ((landed)) captured outside the state which ((is shipped into)) enters the state as (a) frozen food fish ((or frozen shellfish)) or (b) enhanced food fish ((or shellfish)) packaged for retail sales; (2) fresh net caught enhanced food fish to the extent provided under an interstate agreement entered into under RCW 82.27.080; ((and)) (3) the growing, processing, or dealing with enhanced food fish which are raised from eggs or fry and which are under the physical control of the grower at all times until being sold or harvested; and (4) enhanced food fish previously harvested outside the state which enters the state, except as provided in RCW 82.27.010.

 

        Sec. 5.  Section 4, chapter 98, Laws of 1980 and RCW 82.27.040 are each amended to read as follows:

          A credit shall be allowed against the tax imposed by RCW 82.27.020 upon enhanced food fish ((or shellfish)) with respect to any tax ((legally imposed and)) previously paid ((to another state by the taxpayer upon the same food fish or shellfish purchased in the other state)) on that same enhanced food fish to any other legally established taxing authority.

 

          NEW SECTION.  Sec. 6.     This act applies retroactively to July 1, 1980.

 

          NEW SECTION.  Sec. 7.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.