News from the Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Legislature Votes No on Clinton’s Federal Fish Tax

For Immediate Release: May 1, 1998 Contact: Mike Pauley, Assistant to Senator Loren Leman, at (907) 465-3841.

Juneau – The House joined the Senate in unanimously passing legislation Friday urging the Governor and Alaska’s congressional delegation to help eliminate a proposed tax on commercial fisheries for the fiscal year 1999 federal budget. The "fisheries management fee" proposed by the Clinton Administration to pay for federal fisheries management is nothing more than a burdensome tax on Alaska’s seafood industry, according to Senator Loren Leman (R-Anchorage) who sponsored Senate Joint Resolution 40.

"The ‘fisheries management fee’ is typical of President Clinton’s tax and spend agenda," said Leman. "Alaska’s commercial fishermen do not need another tax. Burdening our fisherman with additional fees will undermine the economic competitiveness of our seafood industry. Fishing and seafood processing provide the largest number of private sector jobs in our state. We can’t afford to damage this vital part of our economy."

The fish tax is described by the Clinton Administration as a "fisheries management fee" to pay for the management and enforcement activities of the National Oceanic and Atmospheric Administration. The fee is derived from a tax of up to 1 percent on the ex-vessel value of fish harvested by commercial fishermen. The fee would be in addition to taxes already paid by commercial fishermen and seafood processors, including a raw fish tax, marine fuel tax, licensing fees, fishery landing tax, salmon enhancement tax, seafood marketing tax, and seafood marketing assessment.

The proposed tax would pose a unique burden on Alaska, which typically produces more fish each year than the rest of the United States combined. "Alaskan fishermen and processors will pay as much as $12 million of the $20 million in national revenues projected to be generated by this tax," Leman said. "It’s unfair -- Alaskans will bear the brunt of this tax even though many fisheries in our state are inshore and receive little quantifiable benefit from NOAA’s activities in offshore fisheries."

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