G/SCM/Q2/USA/79  
 
26 October 2020  
(20-7449) Page: 1/5 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES  TO QUESTIONS1 POSED BY AUSTRALIA  REGARDING  
THE NEW AND FULL NOTIFICATION OF THE UNITED STATES2 
The following communication, dated 26 October 2020, is being circulated at the request of the 
delegation of the United States.  
 
_______________  
 
 
The United States respectfully provides the following responses to Australia : 
Question 1  
Sub-Federal Programs  
Page 60: Alabama: Sales & Use Tax  
This program provides fuel tax exemptions and refunds for commercial fishermen. Could 
the United  States please provide estimated total government expenditure for this program 
for the two reporting years.  
Reply : 
The proceeds from the sales of fuel for use or consumption aboard commercial fishing vessels are 
exempt from the state sales and use tax. As this is an exemption, this program poses special 
difficulties in ascertaining the total amount of tax exempted . An estimate of the total amount of tax 
exempted is not maintained  by the state . 
Question 2  
Page 62: Alaska Commercial Charter Fisheries Loan Program  
What is the total amount of loans provided for the two reporting years.  
Reply : 
See below.  
Question 3  
Page 63: Alaska Commercial Fishing Revolving Loan Fund  
What is the total amount of loans provided for the two reporting years.  
 
1 G/SCM/Q2/USA/77 . 
2 G/SCM/N/343/USA.  G/SCM/Q2/USA/79  
 
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  Reply : 
During  the two reporting years, the principal outstanding from both the Commercial Fishing 
Revolving Loan Fund  and the Fisheries Enhancement Revolving Loan Fund  was approximately 
$171 million and $173 million, respectively.  
Question 4  
Page 66: Alaska Reduced Tax Rate for Small Fish Processors  
This program provides tax reductions for fish processing on vessels. Could the 
United  State s please provide an estimated total budget for this program for the two 
reporting years.  
Reply : 
Due to the nature of this program and the uncertainty as to where the processing occurs, the state 
is unable to determine the revenue impact of this program.  
Question 5  
Page 74: California Sale and Use Tax Exemption (Chapter 4. Exemptions: Art. 1, 
Section  6368 ) 
Could the United States please provide the total estimated value of this tax exemption for 
the two reporting years.  
Reply : 
The state does not m aintain an estimate of the total amount of tax exempted. Also, note that this 
exemption also covers vessels used for the interstate transportation of property and the 
transportation of persons or property to offshore drilling platforms.  
Question 6  
Page 82: Connecticut Sales and Use Tax Exemption (Conn. Gen. Stat. §12 -412(40 )) 
This program provides a tax exemption for commercial fishing vessels and machinery or 
equipment for use on the vessels. Could the United States please provide the total 
estimated va lue of this tax exemption for the two reporting years.  
Reply : 
The estimated tax expenditure for fiscal years 2017 and 20 18 were $400,000 and $5,100,000, 
respectively.  
Question 7  
Page 93: Hawaii Fuel Tax Credit for Commercial Fishers Refundable Tax credit  
Could the United States please provide the total estimated value of this tax credit for the 
two reporting years.  
Reply : 
This tax credit was claimed on 121 tax returns for tax year 2018 and the total amount claimed was 
$372,000, up from the amount of  $354,000 claimed for tax year 2017.  G/SCM/Q2/USA/79  
 
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  Question 8  
Page 94: Hawaii Small Vessel Fishing Loan Program  
This program provides loans for purchasers of small fishing vessels. Could the United 
States please provide the total value of loans provided under this progr am for the two 
reporting years.  
Reply : 
Upon further review, it has been determined that this program was repealed prior to 2017 and should 
not have been notified.  
Question 9  
Page 113: Louisiana Gasoline & Special Fuel Taxes for Commercial Fisherman  
This program provides a tax credit for commercial fishing boats. Could the United States 
please provide the total estimated value of this tax credit for the two reporting years.  
Reply : 
The estimated tax exemptions for fiscal years 2017 and 2018 w ere negligible (less than $10,000) 
and $11,448, respectively.  
Question 10  
Page 120: Maryland Commercial Boat Fuel Tax Refund  
Could the United States please provide the total estimated value of tax refunds for the 
two reporting years.  
Reply : 
The amount of t ax exempted in both 2017 and 2018 is estimated to be $100,000.  
Question 11  
Page 120: Maryland Sales Tax Exemptions -Seafood Harvesting  
Could the United States please provide the total estimated value of tax exemptions for the 
two reporting years.  
Reply : 
The estimated value of the exemptions under this program for 2017 and 2018 was $2.7 and 
$2.8 million, respectfully.  
Question 12  
Page 120: Massachusetts Seafood Revolving Loan Fund  
What is the total value of loans provided under this program for the two reporting years.  
Reply : 
This program is no longer providing loans specific to the seafood processing industry.  Two loans 
were provided to a non -profit seafood processing entity in 2001 that are still outstanding. The 
original amount of these loans totalled $2.8 million. The outstanding balance as of June 2019 was: 
$1,555,958.  G/SCM/Q2/USA/79  
 
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  Question 13  
Page 122: Massachusetts Exemption for Vessels, Materials, Tools, Fuels, and Material 
Used in Commercial Fishing  
What is the total value of the tax exemption u nder this program for the two reporting 
years.  
Reply : 
The tax exemptions for this program were estimated to be $12.2 million and $12.3 million in 2017 
and 2018 respectively.  
Question 14  
Page 128: Mississippi Sales Tax Exemption (Miss. Code Ann. 27 -65-101) 
We understand that this program is intended to provide a sales tax exemption for the 
purchase of commercial fishing vessels. Could the United States please provide the total 
value of this program for the two reporting years.  
Reply : 
The estimated tax exemptions under this program for fiscal years 2017 and 2018 were $2,292,000 
and $2,350,000, respectiv ely. 
Question 15  
Page 146: New York Sales Tax Exemption for Commercial Vessels and Commercial Fishing 
Vessels  
Could the United States pl ease provide the total value of this program for the two 
reporting years.  
Reply : 
See below.  
Question 16  
Page 146: New York Sales Tax Exemption for maintenance/repairs performed on 
commercial vessels and commercial fishing vessels  
Could the United States please provide the total value of this program for the two 
reporting years.  
Reply  (for Questions 15 and 16 ): 
New York State’s tax expenditure report indicates that the amount of tax exempted under both 
programs is “minimal”.  
Question 17  
Page 168: South Carolina Sales tax exemption for fuel used in commercial fishing vessels  
What is the estimated total value of the sales tax exemption for the two reporting years.  
Reply : 
An estimate of t he tax exemption for commercial fishing vessels is not maintained . G/SCM/Q2/USA/79  
 
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  Question 18  
Page 170: Texas Vessel Sales Tax Exemption  
What is the estimated total value of the sales tax exemption for the two reporting years.  
Reply : 
Note that this exemption is for a wide range  of vessels, not just fishing vessels. For fiscal years 2017 
and 2018, the amount of sales exemptions was estimated to be $70.9 and 74.7 million, respectively.  
Question 19  
Page 178: Washington Fishing Boat Fuel  
Under this program, a tax exemption is provided to vessels engaged in commercial deep -
sea fishing or in the operation of commercial charter fishing boats. What is the estimated 
total value of the tax exemption for the two reporting years.  
Reply : 
The estimated tax exemptions under this program f or fiscal years 2017 and 2018 were $2.165 million 
and $ 2.240 million , respectiv ely. 
 
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