Title: An act relating to sales and use tax on privately produced trout.

Brief Description: Providing a sales and use tax exemption for privately produced trout purchased by the department of fish and wildlife.

Sponsors: Senators Zarelli and Mulliken.

Brief History:

Committee Activity: Ways & Means: 3/04/05, 3/7/05 [DP, w/oRec].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass.Signed by Senators Prentice, Chair; Doumit, Vice Chair; Fraser, Vice Chair; Zarelli, Ranking Minority Member; Brandland, Fairley, Hewitt, Kohl-Welles, Parlette, Pflug, Rasmussen, Roach, Schoesler and Thibaudeau.

Minority Report: That it be referred without recommendation.Signed by Senator Rockefeller.

Staff: Terry Wilson (786-7433)

Background: The sales tax is paid on each retail sale of most articles of tangible personal property and certain services. Taxable services include construction, repair, telephone, lodging of less than 30 days, physical fitness, and some amusement and recreation services. The use tax is imposed on the use of articles of tangible personal property when the sale or acquisition has not been subject to the sales tax. The use tax commonly applies to purchases made from out-of-state firms. The combined state and local sales and use tax rate is between 7 and 8.9 percent, depending on location.

Major items exempt from sales and use tax include most food for human consumption, prescription drugs, motor vehicle fuel, and items that become a component of another product for sale.

Summary of Bill: The sales and use tax does not apply to privately produced trout purchased by the Department of Fish and Wildlife to supplement existing Department trout hatchery production.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This exemption will allow the Department to buy another 5,000 fish for stocking. It will help improve a popular program.

Testimony Against: None.

Who Testified: PRO: Jim Zimmerman, Washington Fish Growers and Troutlodge, Inc; Tom Davis, Department of Fish and Wildlife.