WAC 176

Commercial Fishing Guide

Tax on Retailers

Tax on Wholesalers, Distributors

Exemptions--Sales of airplanes, locomotives, railroad cars, or watercraft.

Use Tax imposed.

Commercial deep sea fishing--commercial passenger fishing--diesel fuel.

COMMERCIAL DEEP SEA FISHING VESSEL EXEMPTION. While this document explains the application of the law in a specific situation, the information necessary to come to this conclusion is currently provided in WAC 458-20-176 (Commercial deep-sea fishing--Commercial passenger fishing--Diesel fuel) Revised 2/2/09 See ETA 3005.2009

RESTORATION OF A FISHING VESSEL IN THIS STATE FOR EXHIBITION PURPOSES BY AND IN ANOTHER STATE. While this document explains the application of the law in a specific situation, the information necessary to come to this conclusion is currently provided in WAC 458-20-176 (Commercial deep-sea fishing--Commercial passenger fishing--Diesel fuel). Cancelled effective June 29, 2007. The statute and WAC 4580-20-176 both provide that the exemption is available for watercraft used in conducting commercial deep sea fishing outside the territorial waters of WA.

AIRPLANES USED ON VESSELS ENGAGED IN COMMERCIAL DEEP SEA FISHING OPERATIONS Revised 2/2/09 See ETA 3073.2009

Intervening use

Intervening use. Effective January 1, 2010, reseller permits will replace resale certificates as the means to substantiate wholesale purchases. Chapter 563, Laws of 2009.

Component parts of watercraft: Life preservers

Airplanes used on vessel engaged in commercial deep sea fishing operations

COMPONENT PARTS OF WATERCRAFT: LIFE PRESERVERS Revised 2/2/09 See ETA 3049.2009

Taxability of Charter Boat Industries

"New Buyers" Retail Sales Tax Exemption Certificate

Taxability of the Charter Boat Industry

RETAIL SALES TAX – COMPONENT PARTS. The term “component part” as used in RCW 82.08.0262 means an item of tangible personal property that is permanently attached to and a part of the watercraft used for commercial deep sea fishing.

RETAIL SALES TAX – COMPONENT PARTS – TRAWL FISHING NETS. Where custom-made trawl fishing nets are permanently attached to a deep sea fishing vessel, the trawl fishing net is a component part of the vessel and repairs thereto will be exempt from retail sales tax provided that the other requirements of RCW 82.08.0262 are met.

RETAIL SALES TAX – DEEP SEA FISHING EXEMPTION. The exemption from the retail sales tax for watercraft used in commercial deep sea fishing operations, as well as for component parts, repairs, cleaning, etc. of such watercraft, applies to fishing operations outside of Washington’s territorial waters. There is no requirement that the fishing operations occur in international waters.

RETAIL SALES TAX--USE TAX--LEASES--CHARTER-BOAT--INTERVENING USE: The taxpayer, a limited partnership, used a boat which was held out to the public for bare-boat charter leasing. The taxpayer also allowed the limited partners to use the boat without paying rental fees or sales tax. Use tax found to be due, because the partnership's and partners' use of the boat constituted intervening use.

B&O TAX -- RETAILING B&O TAX -- INTERSTATE SALES OF FISHING BOATS -- MANUFACTURING B&O TAX -- RETAILING INTERSTATE TRANSPORTATION EQUIPMENT (RITE) B&O TAX. Where taxpayer made interstate sales of fishing boats and reported the sales as subject to Retailing B&O which should have been reported as subject to Manufacturing B&O tax because the taxpayer manufactured the boats, the auditor erred in subjecting the sales to RITE B&O tax. The auditor should have subjected the interstate sales to Manufacturing B&O tax, same rate of tax as RITE B&O.

USE TAX -- USE IN THIS STATE -- AIRPLANE -- ALSO USED IN ALASKA. The use tax is imposed on the use in this state as a consumer of any article of tangible property. Where Washington taxpayer corporation purchased an airplane in Washington without payment of sales tax, the taxable use of the airplane occurred in Washington when taxpayer exercised dominion and control over the airplane by flying it in Washington and storing it in Washington prior to subsequent actual use in Washington. The use tax is not barred by taxpayer's use of the airplane for four months annually in Alaska.

B & O TAX -- RETAILING B & O TAX -- SALES OF WATERCRAFT -- USED IN DEEP SEA FISHING OPERATIONS -- GILL NET FISHING -- PURSE SEINE FISHING. WAC 458-20-176 (Rule 176) provides that watercraft using the fishing methods of gill netting and purse seining are not deemed to be used in commercial deep sea fishing.

B & O TAX -- RETAILING -- SALES OF WATERCRAFT -- USED IN COMMERCIAL DEEP SEA FISHING OPERATIONS -- SEPARATE RETAILING TAX CLASSIFICATION -- INTERSTATE TRANSPORTATION EQUIPMENT.

RETAIL SALES TAX -- EXEMPTION -- SALES OF WATERCRAFT -- USED IN INTERSTATE OR FOREIGN COMMERCE -- USED IN COMMERCIAL DEEP SEA FISHING OPERATIONS. The sale of watercraft for use in conducting interstate or foreign commerce or for use in conducting deep sea fishing operations outside the territorial waters of the state is exempt from retail sales tax.