SENATE BILL REPORT

                                    SB 5016

         AS REPORTED BY COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES,

                               JANUARY 31, 1991

Brief Description:  Including mussels and clams as enhanced food fish for tax purposes.

SPONSORS:Senator Metcalf.

SENATE COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES

Majority Report:  That Substitute Senate Bill No. 5016 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

     Signed by Senators Metcalf, Chairman; Oke, Vice Chairman; Amondson, Barr, Conner, Owen, Patterson, Snyder, and Sutherland. 

Staff:  Ross Antipa (786‑7413)

Hearing Dates:January 22, 1991; January 31, 1991

BACKGROUND:

The tax rate on enhanced mussels and clams is currently 2 percent of the value at point of landing.

Mussel and clam aquaculturists would prefer to be taxed at the rate for oysters which is .07 percent.

SUMMARY:

The tax rate for mussels and clams is reduced from 2 percent to .07 percent.

EFFECT OF PROPOSED SUBSTITUTE:

Mussels and clams from registered aquatic farms are taxed at the .07 percent level.

Appropriation: none

Revenue:  none

Fiscal Note:  requested January 16, 1991

TESTIMONY FOR:

Mussels and clams grown in aquaculture farms should be taxed at the same rate as oysters.

TESTIMONY AGAINST:  None

TESTIFIED:  Ian Jefferds, Penn Cove Mussels, Inc. (pro); Tim Smith, PLOGA (pro)