This bill establishes a sales and use tax exemption for bait purchased for commercial fishing in Washington State. A new section is added to chapter 82.08 RCW, stating that the sales tax does not apply to bait sales for commercial fishing, provided that buyers present an exemption certificate to sellers. The bill defines "bait" and "commercial fishing," clarifying that the exemption is not applicable to fishing charter companies. Additionally, a new section is added to chapter 82.12 RCW, which states that the use of bait in commercial fishing is also exempt from use tax, with the same definitions and conditions applying. Both sections will expire on January 1, 2037.

Furthermore, the bill includes a tax preference performance statement that outlines the legislative intent to support the commercial fishing industry and ensure equitable tax treatment compared to similar industries. The joint legislative audit and review committee is tasked with evaluating the fiscal impact of the exemption and comparing it to tax preferences for other industries, such as commercial farming. The act is set to take effect on January 1, 2026.