The gross income directly derived from treaty fishing rights related activity is not subject to state tax. This exclusion from tax is limited to those businesses exclusively owned and operated by Indians or tribes who have treaty fishing rights. If a business exclusively owned and operated by Indians or tribes deals with both treaty and non-treaty fish, this exclusion from tax is limited to the business attributable to the treaty fish.

Commercial fishers are required to register with us and account for the business and occupation (B&O) tax.

If you catch fish in Washington waters, you are subject to B&O tax under the Extracting classification. The amount of tax due is calculated by multiplying this rate times the value of the fish (usually the selling price).

If you catch fish outside of Washington waters but selling your catch within Washington, you are subject to either the Wholesaling, or Retailing, unless the fish are sold in interstate or foreign commerce. The amount of tax due is calculated by multiplying the appropriate rate times the selling price of the fish. (The Wholesaling B&O tax applies to sales for resale; the Retailing B&O tax applies to sales to the final consumer.)

Commercial fisherman that sell fish to others that will resell the fish (wholesaling) must obtain a reseller permit from the buyer. This document must be retained for five years.

If you catch fish in Washington waters and sell them within Washington, other than in interstate or foreign commerce, you are liable for both the Extracting B&O tax and the Wholesaling or Retailing B&O tax. However, you are also entitled to the Multiple Activities Tax Credit (MATC) (pdf). The MATC allows the commercial fisher to take a credit against the Extracting B&O tax in an amount equal to the Wholesaling or Retailing B&O tax due on the selling activity. The effect of the MATC is to eliminate a double tax on a person who both catches and sells fish in Washington.

If you are not registered with us and should be, you must complete a Business License Application. These forms are available at your local department of Revenue, Labor & Industries, Licensing, or Employment Security offices and the Corporation Division of the Secretary of State.

What is the enhanced food fish tax?

In addition to the B&O tax, commercial fish buyers and sellers may be liable for the excise tax on enhanced food fish. We measure that tax by the value of the fish when first landed. This tax also applies to byproducts and parts of seafood.

The law bases the fish tax on enhanced food fish value at the point of landing. The law considers the fish as "landed" when they are placed on a tender in the territorial waters of Washington, or when they are brought to land, which includes wharves, piers, or other such extensions.

What rate do I pay?

Who pays the fish tax?

The fish tax is usually paid by the licensed dealer who bought the fish; the commercial fisher usually doesn’t pay the fish tax. However, if the buyer is someone other than a Department of Fish and Wildlife licensed dealer, then the commercial fisher is directly responsible for the tax.

Even when the commercial fisher sells the fish to a licensed dealer, the fisher may bear some of the economic burden of the fish tax. A dealer is entitled to deduct an amount equal to half of the fish tax from the price they paid to the fisher.

How do I pay the tax?

You need to report the fish tax on the Enhanced Food Fish Excise Tax addendum (worksheet) to the Combined Excise Tax Return.

Which fish are exempt?

• Transactions involving treaty food fish are not subject to the enhanced food fish tax, regardless of where the transaction takes place.
• Enhanced food fish originating outside Washington which enter Washington frozen, or packaged for retail sale.
• Shellfish raised from eggs or larvae, and under the physical control of the grower until harvested or sold
• Tuna, mackerel, and jack fish are exempt from the enhanced food fish tax.

Such documentation required for exemption to keep includes fish tickets, bills of lading, invoices, or other documentation are required to be kept by business owners to potentially reconcile fish tax with reports sent to Washington Department of Fish and Wildlife.

What credits are available?

A credit is allowed against the amount of enhanced food fish tax owed for any tax previously paid on the same food fish to any legally established taxing authority. To qualify for a credit, the owner of the enhanced food fish must have documentation showing they paid the tax in another jurisdiction.

If you have questions about the fish tax, please call (360) 705-6705.

Commercial fishers must pay retail sales or use tax on all nonexempt equipment and supplies used to conduct their business activity.

There are retail sales and use tax exemptions (pdf) for sales of, or repairs to, watercraft and component parts that are primarily used in commercial deep sea fishing operations outside the territorial waters of Washington. This exemption is not available for watercraft and component parts used for kelping, purse seining, or gill netting, because such fishing methods can only be performed in Washington waters (the three-mile limit).

If you are regularly engaged in commercial deep sea fishing operations, you are also entitled to a sales and use tax exemption for diesel fuel used in the operation of watercraft. To be "regularly engaged" in commercial fishing operations and to qualify for these exemptions, you must earn at least $5,000 per year at this activity. (If you engage in commercial deep sea fishing and also charter boats for sport fishing outside the territorial waters of the state, you may combine your income from both activities in order to meet the $5,000 threshold.)

Vessels used exclusively for commercial fishing activities are subject to personal property tax (pdf). These boats are listed with and assessed by our agency. We are responsible for collecting the tax.

To list your boat, or if you have questions about the personal property tax, call the Commercial Vessels Registration & Valuation Section at 360-705-6203 or write us at:

Department of Revenue
Taxpayer Account Administration Division
PO Box 47476
Olympia, WA 98504-7476

Boats used part-time for commercial fishing activities are subject to the Watercraft Excise Tax. The Watercraft Excise Tax is administered by the Department of Licensing. If you have questions about this excise tax, call the Department of Licensing's Vehicle Vessel Division at 360-902-3770. You can also contact your local licensing agent or write to:

Department of Licensing
Vehicle Vessel Division
PO Box 9909
Olympia, WA 98507-9909

For more information

The following administrative rules pertain to commercial fishers:

• Washington Administrative Code (WAC) section 458-20-135 - Extracting natural products.

• WAC 458-20-176 - Commercial deep-sea fishing.