HOUSE BILL REPORT

HB 628

BYRepresentatives Basich, Haugen, Hargrove, Kremen, Fisch, Vekich, Zellinsky, P. King and Holm

Exempting sales of diesel fuel used in commercial fishing vessels from sales and use tax.

House Committe on Ways and Means/Revenue

Majority Report:     Do pass.  (8)

     Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Madsen, Schoon, Valle and Winsley.

House Staff:Susan Kavanaugh (786-7145)

AS PASSED HOUSE MARCH 18, 1987

BACKGROUND:

Washington commercial deep sea fishing boats and commercial passenger fishing boats range out of Washington waters in search of good fishing.  It is easy for owners of these vessels to purchase diesel fuel in Oregon and avoid the Washington sales tax.  While in Oregon ports, they can also buy supplies, equipment, and boat repair services that might otherwise be purchased in Washington.

SUMMARY:

Exempts diesel fuel used for commercial deep sea fishing or the operation of commercial passenger fishing boats with operations outside Washington waters from the retail sales and use tax.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Ed Owens, Coalition of Washington Ocean Fishermen; Nancy Davies, President, Quest Export Trading Company; Randy Ray, representing Maritime and Seafood Association; Greg Neitzel, Jessie's Ilwaco Fish Company; Ernie Summers, Washington Dungeness Crab Producers and Coast Draggers Association; and Darrel W. Potter, Western Fishboat Owners Association.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Washington State loses substantial income and tax revenue because it is cheaper for commercial fishing operations to travel to Oregon ports to refuel and buy supplies and boat repair services.  The cost in lost diesel fuel sales tax revenue will be more than offset by the increase in tax revenue from purchases of other goods and services.

House Committee - Testimony Against: None Presented.