You asked approximately how many lobstermen may be eligible for a proposed property tax break.

SUMMARY

It appears there are no more than one or two lobstermen eligible for a tax break in most coastal towns under HB 6776, AAC Real Estate Property Taxes and Waterfront Residential Real Property Owned by Commercial Lobster Fishermen, based on figures from the Department of Environmental Protection (DEP). HB 6776 provides a property tax break for the portion of certain lobstermen's residential waterfront property that is used for lobstering purposes. The Environment Committee favorably reported the substitute bill to the Finance, Revenue and Bonding Committee March 21, 2007.

Specifically, HB 6776 exempts from property tax the portion of waterfront residential property that licensed commercial lobster fisherman own and use for commercial lobstering purposes. A lobster fisherman must (1) apply for the exemption in the tax year ending immediately before any assessment date and (2) earn at least 50% of his or her adjusted gross income, as determined for federal income tax purposes, from commercial lobster fishing, subject to the town assessor's satisfactory proof.

ESTIMATE OF ELIGIBLE LOBSTERMEN

DEP provided a 2005 list of the towns of residence for the state's 143 licensed fishermen with boats 25 feet or longer, a length that connotes full-time commercial fishermen, according to DEP. Although the number includes fishermen other than lobstermen (e. g. , trawlers, gill netters, fishpotters), the vast majority are lobstermen, according to DEP's Eric Smith, Director, Marine Fisheries Division.

DEP's list shows that there are between one and four licensed commercial fishermen in most coastal towns (inland towns would not qualify), with the exception of Groton (which includes Noank), which has 11 all together. (Stonington also has larger numbers, but these are areas where there are likely more non-lobster fishermen, according to Smith. ) Further, there are only three or so people in Groton who qualify under the bill, according to February 9, 2007 Environment Committee public hearing testimony. Smith notes that it is also likely that not all licensed commercial lobstermen who own residential property in coastal towns are on the waterfront.

Table 1 below is DEP's 2005 list (the latest available).

Table 1: Commercial Fishermen with 25 Foot or Longer Vessel by

Town for 2005

Table 1: -Continued-

Source: DEP – *does not include shell fishermen

JH: ts