Reader finds fuel costs too taxing

Posted: Tuesday, July 26, 2005

The daily fuel cost for a fishing charter boat is now more that $200, plus sales tax of about $15. The combined expense of fuel and sale tax paid on the fuel must be included in setting the price of the charter fare, which is now $190 per person, upon which, sales tax is again collected thereby compounding the sale tax by paying sales tax again on the sales tax already paid on the fuel.

Sales tax on sales tax is compound double sales taxation.

This is like requiring a restaurant to pay sales tax on the food purchased from a supplier to make your dinner and then requiring you to pay sales tax again on the price for your meal.

Out of necessity to offset rising fuel costs and sales taxes on fuel, fishing charter fares next season will far exceed $200, plus 7.5 percent sales tax to about $235 per person, per day without adding insult to injury by piling on an ill-advised tourist tax.

Bruce Warner, Homer



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