PS 93(1.6)

Application Procedures for a Commercial Fisherman Exemption Permit

This publication has been superseded by PS 2000(3)

PURPOSE: This Policy Statement describes the procedures that fishermen must follow in applying for a Commercial Fisherman Exemption Permit and explains the purchases that are exempt from sales and use taxes.

BACKGROUND: Conn. Gen. Stat. §12-412(18) exempts from sales and use tax materials, rope, fishing nets, tools and fuel or any substitute, which are used directly in the fishing industry.

Conn. Gen. Stat. §12-412(40) exempts from sales and use tax any vessel used exclusively in commercial fishing and any machinery or equipment for use on a commercial fishing vessel.  The exemption applies if, in the calendar year immediately preceding the date of purchase, storage or use, not less than 50% of the purchaser's gross income was derived from commercial fishing.

STATUTORY AUTHORITY: Conn. Gen. Stat. §§12-412(18) and 12-412(40).

DEFINITION: "Fishing Industry" means the catching, gathering and processing of fish solely as a regular commercial business.

EXEMPTED ITEMS: Items exempted under Conn. Gen. Stat. §§12-412(18) and 12-412(40) include but are not limited to:

• Twine items (fish netting, ropes and similar items used in fish nets), trawls, traps, hooks, lures
• Dry or natural ice
• Winches and deck equipment (tow wire, cable, tackle rope, links, shackles, nets, twine, rings, sweep ropes, chain)
• Fasteners
• Fuel (kerosene, gas, diesel oil, lube oil, grease, L.P. gas)
• Propulsion (flax packing)
• Nets and underwater gear (needles)
• Tools (shovels, ice clippers)
• Accessories and miscellaneous (bands, rubber and friction tape, distilled water, knives, picks, scallop bags, forks)
• Commercial fishing vessels including daily fishing party charter boats
• Fishing equipment appurtenant to or used in connection with said vessels, including but not limited to, equipment necessary to the propulsion of or the navigation of the vessel (engines, propellers, radar, loran, radio telephones and similar equipment).

Items NOT qualifying for exemption under Conn. Gen. Stat. §§12-412(18) and 12-412(40) include but are not limited to:

• Repair and replacement parts for vessels or equipment
• Raw materials (lumber, steel, etc.) to be used in the construction of vessels or equipment.

PROCEDURE: Commercial fishermen must complete and file with the Department of Revenue Services REG-14, Application for Commercial Fisherman Tax Exemption Permit, to claim the exemption.

Exemptions will be issued on a yearly basis effective from July 1 through June 30 of the succeeding year. The first two digits of the exemption number indicate the year in which the permit expires. For example, permit number 99-099 expires on June 30, 1999, and permit number 00-099, when issued, will expire on June 30, 2000.

EFFECT OF THIS DOCUMENT: A Policy Statement is a document that explains in depth a current Department position, policy or practice affecting the tax liability of taxpayers.

EFFECT ON OTHER DOCUMENTS: PS 93(1.5) (Issued 4/9/98), is superseded and may not be relied upon after the date of the issuance of this Policy Statement.

RELATED FORMS AND PUBLICATIONS: For related forms or publications please request:

REG-14 Application for Commercial Fisherman Tax Exemption Permit.
IP 92(1.5) Q & A on the Sales and Use Taxes for a New Business
IP 99(11) Business Taxes

If you have questions regarding other Connecticut taxes, please call the Department of Revenue Services during business hours, Monday through Friday:

(toll-free within Connecticut), or (from anywhere).

TTY, TDD, and Text Telephone users only may transmit inquiries 24 hours a day by calling 860-297-4911.

PS 93(1.6)
Sales and Use Taxes
Issued: 4/1/99
Replaces: PS 93(1.5) (Issued: 4/9/98)