March 29, 2017 — California wants to raise commercial fishing landing taxes 1,300 percent, or USD 12.4 million (EUR 11.5 million) – a tax hike commercial fishermen and seafood processors are unsure they can survive.
Fishermen “are very concerned, as are their crews, as are primary processors and the plant workers,” Rob Ross, the executive director of the California Seafood and Fisheries Institute, told SeafoodSource. If fees rise as high as proposed, “many will not fish, as there will be no margin.”
The proposal issued by Gov. Jerry Brown’s administration and the California Department of Fish and Wildlife aims to make up for a departmental budget shortfall that has been growing more severe for years.
Revenues collected by the department have held steady in the last decade, but costs for staff salaries, drought response activities and additional law enforcement personnel and equipment have all risen, forcing the department to dip into and erode reserves. Other costs not initially planned for, such as endangered species management, are also rising.
Money from the state’s general fund has supplemented, but is inconsistent year to year.
Commercial seafood landing taxes, which are set by the legislature, haven’t risen since 1992, and are currently generating revenue that is 0.5 percent of the value of the fishery. While other license fees and taxes collected by the department automatically increase with inflation, commercial seafood landing taxes don’t.
Current taxes range from USD 0.01 to USD 0.05 (EUR 0.01 to 0.04) per pound. Adjusting them to compensate for the inflation of the last quarter-century would require raising them roughly 80 percent, or about USD 750,000 (EUR 694,000) – far less than the 1,300 percent proposed increase.
The department’s main fund, called the Fish and Game Preservation Fund, pays for 400 wildlife law enforcement officers, land management, wildlife conservation, fisheries management and the Fish and Game Commission, which establishes regulations.