This information is not current and is being provided for reference purposes only
IP 2005(8)
Fisherman's Guide to Sales and Use Taxes and Estimated Income Tax
This publication has been superseded by IP 2007(13)
Conn. Gen. Stat. §12-412(40) exempts from sales and use taxes any vessel used exclusively in commercial fishing and any machinery or equipment used 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. The exemption is also available for an applicant who is starting a new commercial fishing business and intends to carry on commercial fishing as a trade or business for at least two years.
- Fishing industry means catching, gathering, and processing fish solely as a regular commercial business.
- Commercial fisherman means any person, firm or corporation engaged in commercial fishing.
- Commercial fishing means taking or attempting to take any finfish, crustacea, sea scallops, squid, horseshoe crabs, or bait species for commercial purposes or by the use of any commercial fishing gear.
- Commercial fishing vessels include any vessel with a certificate of documentation issued by the United States Coast Guard for coastwise fishery.
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Twine items (fish netting, ropes, and similar items used in fish nets), trawls, traps, hooks, lures;
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Dry or natural ice;
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Winches and deck equipment (tow wire, cable, tackle rope, links, shackles, nets, twine, rings, sweep ropes, chain);
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Fasteners;
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Fuel (kerosene, gas, diesel oil, lube oil, grease, LP gas);
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Propulsion (flax packing);
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Nets and underwater gear (needles);
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Tools (shovels, ice clippers);
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Accessories and miscellaneous (bands, rubber and friction tape, distilled water, knives, picks, scallop bags, forks);
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Commercial fishing vessels including daily fishing party charter boats; and
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Fishing equipment for use on or in connection with the vessels, including but not limited to, equipment necessary for the propulsion or navigation of the vessel (engines, propellers, radar, loran, radio telephones, global positioning systems, and similar equipment), and fish tracking equipment.
Items not qualifying for exemption under Conn. Gen. Stat. §12-412(18) and 12-412(40) include but are not limited to:
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Repair and replacement parts for vessels or equipment; and
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Raw materials (lumber, steel, etc.) to be used in the construction of vessels or equipment, unless being constructed to be sold.
A fisherman who changes his or her address, or changes the business structure, must apply for a new Commercial Fisherman Tax Exemption Permit by submitting a new Form REG-14 and attaching the old permit. If approved, DRS will issue you a Commercial Fisherman Tax Exemption Permit. If the assets of the business are transferred as part of forming a new entity, the new entity must reapply in its own name even if the owner(s) of the new entity remain the same.
Special Requirements for Start-Up Fishermen: Conn. Gen. Stat. §12-412(40) relieves a start-up commercial fisherman of the previous year gross income threshold requirement. To qualify for a Commercial Fisherman Tax Exemption Permit, the start-up fisherman must satisfy the following requirements:
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The fisherman intends to carry on commercial fishing as a trade or business for at least two years after each purchase of a vessel, machinery, or equipment; and
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At least 50% of the fisherman’s gross income, as reported for federal income tax purposes, must have been from commercial fishing in the year immediately preceding the taxable year; or
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For the two immediately preceding years, at least 50% of the fisherman’s average gross income, as reported for federal income tax purposes, must have been from commercial fishing.
a. 66 2/3% of the income tax shown on your current year's Connecticut income tax return; or
b. 100% of the income tax shown on your prior year's Connecticut income tax return, if you filed a Connecticut income tax return for the prior year that covered a twelve-month period.
If, on or before March 1 following the end of the taxable year, you file a Connecticut income tax return and pay the full amount of tax due, you will not be subject to interest for not paying estimated tax.
For Connecticut income tax purposes, an individual is a fisherman for any taxable year if the individual is a fisherman as defined in I.R.C. §6654(I)(2) for the taxable year.
Related Forms and Publications: For related forms or publications, request the latest version of:
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Form REG-14, Application for Commercial Fisherman Tax Exemption Permit
- Informational Publication 2003(28), Getting Started in Business: Understanding Connecticut Taxes
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Informational Publication 2003(34), Business Taxes
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Special Notice 2000(2), Application of Sales and Use Taxes to Vessels
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Form AU-724, Motor Vehicle Fuels Tax Refund Claim
For Further Information: Call DRS during business hours, Monday through Friday:
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1-800-382-9463 (in-state), or
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860-297-5962 (from anywhere)
TTY, TDD, and Text Telephone users only may transmit anytime by calling 860-297-4911.
Forms and Publications: Forms and publications are available anytime by:
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Internet: Preview and download forms and publications from the DRS Web site.
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Telephone: Call 860-297-4753 (from anywhere), or 1-800-382-9463 (in-state) and select Option 2 from a touch-tone phone.
IP 2005(8)
Sales and Use Taxes
Fishermen
Estimated Taxes
Issued: 03/04/2005