Charter companies that book fishing charters for boat owner/operators are responsible for collecting retail sales tax on that charter income they collect on behalf of the boat owner/operator, and reporting/remitting it directly to the Department of Revenue. The charter company reports the charter income under the retail sales tax classification and also under the retailing B&O tax classification. The charter company is allowed to take a Sales Reported as Agent deduction under the retailing B&O tax classification.
Charter companies are subject to the B&O tax under the service and other activities classification on the amount they retain from the charter proceeds as compensation for the chartering services. These amounts are not deductible from the amount of chartering revenues subject to retail sales tax.