FISCAL NOTE

House Bill 10 as introduced would (1) exempt bait, equipment, and materials used in the process of commercial fishing from sales and use tax and (2) decrease the sales and use tax rate levied on vessels and machinery that are used in the process of commercial fishing from 2% for vessels and 4% for machinery to 1.5%. These provisions would decrease receipts to the Education Trust Fund, State General Fund, and county and municipal funds by an undetermined amount dependent upon the cost of bait, materials, equipment, vessels, and machinery purchased for use in the process of commercial fishing and the applicable state or local sale or use tax that would otherwise have been levied.

Further, this bill would also exempt all vessels and equipment used in the process of commercial fishing from ad valorem tax, which would decrease receipts to the State General Fund, Public School Fund, Veterans Assistance Fund, and county and municipal funds by an undetermined amount depending upon the value of vessels and equipment used in the business of commercial fishing and the applicable state or local ad valorem tax that would otherwise have been levied.

The Department of Conservation and Natural Resources reports that 1,831 commercial fishing licenses were purchased during Fiscal Year 2021.