There is a tax on the commercial possession of certain fish within the state. The enhanced food fish tax also applies to byproducts and parts of seafood. The enhanced food fish tax is measured by the value of the fish when first landed. "Landed" means the act of physically placing enhanced food fish on a tender in the territorial waters of Washington or on any land within or without the state of Washington, including wharves and piers.
The tax is paid by the first commercial possessor, who is usually the licensed dealer who bought the fish.
The enhanced food fish tax rate is dependent on the classification of the fish or seafood:
Species | Rate |
Puget Sound anadromous game fish; Chinook, coho, and chum salmon | 0.0562 |
Ocean water, Columbia River, Willapa Bay, and Grays Harbor (including fish caught in Oregon, British Columbia, and Southeast Alaska) anadromous game fish; Chinook, coho, and chum salmon | 0.0669 |
Sea urchins and cucumbers | 0.0225 |
Pink and sockeye salmon | 0.0337 |
Shellfish; other food fish | 0.0225 |
Oysters | 0.0009 |
Anadromous game fish means steelhead trout, anadromous cutthroat trout, and Dolly Varden char.
There are certain species that are exempt from the enhanced food fish tax, including tuna, mackerel, and jackfish. Shellfish raised from eggs or larvae, and under the physical control of the grower until harvested or sold, are exempt from the fish tax. Transactions involving treaty food fish, regardless of where the transaction takes place, are also exempt from the enhanced food fish tax.
There are credits available against the enhanced food fish tax for taxes previously paid on the same enhanced food fish to any other legal taxing authority, including Indian tribes.
The majority of the enhanced food fish tax is deposited in the state General Fund. However, a portion of the tax is deposited into the state Fish, Wildlife, and Conservation Account (Account). All the enhanced food fish tax revenues from anadromous game fish is deposited into the Account. In addition, the equivalent to 1 percent of the taxes for Ocean water, Columbia River, Willapa Bay, and Grays Harbor (including fish caught in Oregon, British Columbia, and Southeast Alaska) Chinook, coho, and chum salmon are deposited into the Account.
The enhanced food fish tax revenues deposited into the state General Fund are reduced by 50 percent. The portion that previously went to the state General Fund will now be distributed to the city where the fish landed.
The substitute clarifies the determination of the location of fish landing to where the person liable for the tax first possessed the enhanced food fish. Under the substitute, the distribution of revenues includes counties as well as cities. The substitute makes a technical correction to the tax rates as well as provides a January 1, 2027, effective date.
(In support) There is a significant impact to the communities where commercial fishing is located; however, much of the tax revenues from the fishing industry do not remain in those small cities and counties. It is important for these communities to have the resources to maintain the necessary infrastructure and investments to ensure the fishing industry and the communities are successful. This bill is meant to focus some of the revenues from the tax to the communities that generate the economic activity.
(Opposed) None.
Representative Steve Tharinger, prime sponsor.