If approved, the measure, known as LD 185, “An Act to Refund the Sales Tax Paid on Fuel Used in Commercial Fishing Vessels,” would restore a benefit fishermen previously obtained through a now-defunct fuel rebate program. Officials estimate the new law would cost the state $427,500 in lost revenue the first year, increasing to $570,000 annually after that.
On the plus side, Rep. Bruce MacDonald of Boothbay, the bill’s sponsor, hopes it would lure fishing boats, currently re-fueling and fishing out of Massachusetts, back to their berths in Portland. MacDonald said those vessels are not just buying cheaper fuel out of state, they are also landing their catch in ports such as Gloucester and New Bedford, depriving the Portland Fish Exchange of business.
Some 20 large fishing vessels no longer land their fish in Portland, MacDonald said, and Fish Exchange business has been cut in half. Massachusetts doesn’t impose a fuel tax on commercial fishermen.
Glen Libby of Port Clyde, head of the Midcoast Fishermen’s Association, said he believes the fuel tax exemption bill is a good idea. “For us it’s about six months worth of boat payments,” he said, referring to his 54-foot fishing vessel. With new nets that drag less in the water, Libby has reduced diesel fuel consumption to seven to eight gallons per hour, about 20 percent less than with old gear. But that still adds up at four dollars per gallon.
MacDonald, a Democrat, has several co-sponsors including Republican Sen. David Trahan of Waldoboro. The taxation committee voted unanimously for the bill after amending it to exclude lobstermen. The Maine Lobstermen’s Association said its members don’t need the tax break, and the bill’s chances to pass through the appropriations committee will improve if they’re excluded from it.
A member of the legislature’s marine resources committee, MacDonald said he is optimistic his bill will pass. Several newspapers have endorsed it. “It’s not a slam dunk. There will be some number of people who oppose anything that has a financial impact. I think it’s a relatively low-risk experiment. We don’t know if it will work or not.”
The bill has yet to be scheduled for a vote by the full legislature. It has been assigned “emergency” status so will take immediate effect if passed.
*Edited to include additional information.