A tax by any other name is still a tax

When is a tax not called a tax? When it’s called a fee.

Louisiana businesses are very familiar with fees, as they have been paying them for years. One example is the Corporate Franchise Fee, which imposes a tax (or fee) on corporate debt. It was the subject of much debate before the legislature finally agreed to begin phasing it out last year.

Now, it is the Louisiana Department of Wildlife and Fisheries’ turn. With little fanfare, the LDWF slipped a new fee through the legislature – a fee that has commercial fishermen enraged.

The bill, approved during the recent legislative session, creates a new Louisiana regulation on commercial fishermen. It requires all commercial fishing boats, which are already registered with the federal government through the U.S. Coast Guard, to be registered with the state as well. The result is a new fee on the commercial fishing industry.

State Senator Reggie Dupre says he was caught off guard by the bill and will try to have it repealed. He is not alone. Meanwhile, fishermen are being told to pay up or moor up.

The cost, based on vessel length, is relatively low. According to the Associated Press, the biggest shrimp boats in this area would be charged around $150. But fishermen who have had to deal with low shrimp prices, high fuel costs and hurricanes say the hurt is emotional as well as financial.

Although creating a clean database of commercial fishing boats in the area has benefits, it appears as though the greatest benefit of the new registration is to the LDWF – more revenue.

The legislature should read bills they approve more carefully and put an end to unnecessary taxes disguised as fees. A tax by any other name is still a tax.