Here is an up date of this issue as posted in the Northwest Bass News Letter.....
Good News for All!
You may have heard the rumors, now here are the facts. In December, the Washington State Department of Revenue issued a letter stating that Northwest Bass Events (and for that matter, ALL fishing tournaments) did not fall under the tax classification of “services and other activities,” but were instead “retail sales.” Imagine our surprise, and the surprise of everyone we spoke with in the industry! Needless to say, we disagreed with the DOR and have spent the last several months appealing their decision… and the $60,000.00 plus bill for back retail sales tax. Should our appeal fail every organization that conducts fishing tournaments, big or small, for profit or non-profit, would be required to collect and pay retail sales tax. For an industry that operates on a very narrow margin, paying out nearly 90% of income directly back to the anglers, this would be devastating!
Fortunately for Northwest Bass and all fishing tournaments in the State of Washington and around the country, our sleepless nights and determination, aided by a realistic administrative law judge and a knowledgeable (albeit very expensive) lawyer, insured that sanity won out over the ridiculous, and the DOR has verbally agreed that fishing tournaments do NOT qualify as “retail sales.” The season is on!!! The DOR is still “debating” internally as to where exactly we fall under the classification of “services and other activities” and the status of our current deduction for “cash and prize payouts,” but the biggest potential devastation has been averted. In the coming weeks, I will provide you a detailed account of our efforts, as well as the final outcome. For now, all of us, be it the small club, a private organization running an open event, a circuit or yes, even salmon derbies, can rest easy. No new taxes! (Please note that I did not say Read My Lips)
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