Commercial fishing boat fuel

From the 2024 DOR Tax Exemption Study

82.08.0298; 82.12.0298 - Commercial fishing boat fuel Description Persons regularly engaged in commercial deep-sea fishing operations or in commercial charter boat fishing operations outside of Washington territorial waters are exempt from sales and use taxes on diesel fuel when used for these activities. Regularly engaged means the person has gross income of $5,000 or more annually from these activities. Purpose Recognizes that the majority of such fuel is consumed outside of Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.137 $2.155 $2.194 $2.270 Local Taxes $0.961 $0.969 $0.986 $1.021 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.976 $2.194 $2.270 Local Taxes $0.000 $0.889 $0.986 $1.021 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the consumer energy price growth rate reflected in the S&P Global Market Intelligence March 2023 forecast. - Local revenue estimates use the statewide average local sales and use tax rate