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Committee hears staff briefing on sales tax exemption for bait used in commercial fishing

2159681 · January 28, 2025
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Summary

Senate Bill 5259 would exempt bait purchased for licensed commercial fishing activities from retail sales and use tax; staff estimated a modest biennial revenue impact and no public testimony was offered.

Alia Kennedy, staff to the Senate Ways & Means Committee, briefed members on Jan. 28 about Senate Bill 5259, which would exempt bait purchased for licensed commercial fishing activities from retail sales and use tax.

Kennedy said the exemption applies to holders of a commercial fishing license issued by the Department of Fish and Wildlife and does not apply to recreational fishing charters. A taxpayer seeking the exemption would obtain an exemption certificate from the Department of Revenue, she said. The exemption contains a tax preference performance statement and would expire Jan. 1, 2037.

Staff presented the fiscal note: an estimated state revenue reduction of $860,000 in the 2025‑27 biennium and $1.3 million in the next biennium, and Department of Revenue administrative costs of about $204,000 in 2025‑27 and $39,000 in 2027‑29. No members of the public signed in to testify during the hearing.

The committee did not take action during the Jan. 28 hearing; staff said the bill will proceed through the usual committee process.