On Nov. 19, the Haines Borough received $159,925 in fisheries business tax, “raw fish tax,” for the fiscal year that began July 1, 2020. Despite the COVID-19 pandemic, this is almost exactly what the borough had anticipated in the budget passed in June and comparable to amounts received in recent years, which have ranged from $94,421 in 2005 to $438,390 in 2015.
Every year, the state collects tax from fisheries based on fish pounds landed during the prior year’s fishing season, and shares a portion with municipalities where the fish were processed.
This year, local fishing industry revenue has been negatively impacted by both the COVID-19 pandemic and weak salmon runs. However, the economic difficulties weren’t reflected in the raw fish tax the borough received this month because the figure was based on fish landed during the 2019 fishing season.
“I’m expecting (next fiscal year’s) raw fish tax figures to be low, but I don’t have any specifics right now,” borough chief fiscal officer Jila Stuart said. The raw fish tax received next year will be based on the dismal 2020 season.
Stuart said each year, the borough reaches out to local fish processors, OBI Seafoods and Haines Packing Company, to get an idea of what to expect in fish tax for the fiscal year. While this year, the fish tax budgeted was almost exactly spot on, it’s not always this precise, she said.
The raw fish tax is deposited in the borough’s areawide general fund. Stuart said the assembly often appropriates a portion of the tax to help pay for operating costs at the harbor.