|
Issue Background:
Throughout the United States, road and rail congestion threaten economic growth and quality of life. In many regions, transportation planners are examining how local waterways can play an increased role in accommodating the movement of freight. The Great Lakes navigation system offers our region a cost effective, waterborne transportation alternative.
An impediment to the development of short-distance marine transportation services is the U.S. Harbor Maintenance Tax. The HMT was enacted as part of the Water Resources Development Act of 1986. It is an ad valorem tax of 0.125 percent on the value of "commercial cargo" loaded or unloaded from vessels using United States ports. The tax is paid by the owner of the cargo in the ship. The tax applies to shipments between two U.S. ports, as well as imported cargo. (Originally, the HMT applied to exports, but the Supreme Court found this to be unconstitutional).
Since cargo moving by truck and rail is untaxed, the HMT acts as a deterrent to the development of so-called, "short sea shipping" services.
Several new short sea shipping services are under development at this time in the Great Lakes region. Most of these seek to move commercial cargo between the United States and Canada. In each case, highway, rail and border congestion have created a need for maritime alternatives.
AGLP Position:
AGLPA supports the development of regional and local waterborne freight transportation services to relieve highway, rail and border congestion. AGLPA urges Congress to enact H.R. 981 / S. 1683, legislation that would exempt such short sea services from the U.S. Harbor Maintenance Tax.
«BACK TO AGENDA
|
