Posted:
June 16, 2011
Speaking Tuesday during a hearing held by the Subcommittee on Coast Guard and Maritime Transportation, Rep. Chip Cravaack (R-MN) called on Congress to eliminate "double taxation" under the Harbor Maintenance Tax (HMT) and to use dollars deposited in the Harbor Maintenance Trust Fund for their intended purpose: maintenance dredging.
Maritime transportation is "critically important" to Minnesota and the Great Lakes region, Rep. Cravaack said. Therefore it is imperative to "remove barriers like double-taxation under the Harbor Maintenance Tax."
The subcommittee hearing focused on creation of American jobs through increased exports, and expansion and development of the U.S. maritime transportation system.
The Harbor Maintenance Tax is an ad-valorem assessment on imported and domestic cargo entering U.S. ports. Cargo can be subjected to multiple assessments of the tax if it is transshipped to another port in the U.S., creating a significant administrative barrier to waterborne transportation. Surface-based transportation, such as trucking or rail, does not face this barrier.
Rep. Cravaack also urged Congress to spend the money deposited into the Harbor Maintenance Trust Fund (HMTF) - funded by the HMT - for its intended purpose: maintenance dredging of the nation's waterways and harbors. There is a greater than $5 billion surplus currently in the HMTF, ready to be spent on dredging, Rep. Cravaack said.
"At a time when our nation's vessels are unable to carry full loads because of inadequate channel and harbor depths, it is imperative that we better utilize HMT funds to increase transportation productivity," he said.
Rep. Cravaack urges use of Harbor Maintenance Tax receipts for dredging
Speaking Tuesday during a hearing held by the Subcommittee on Coast Guard and Maritime Transportation, Rep. Chip Cravaack (R-MN) called on Congress to eliminate "double taxation" under the Harbor Maintenance Tax (HMT) and to use dollars deposited in the Harbor Maintenance Trust Fund for their intended purpose: maintenance dredging.
Maritime transportation is "critically important" to Minnesota and the Great Lakes region, Rep. Cravaack said. Therefore it is imperative to "remove barriers like double-taxation under the Harbor Maintenance Tax."
The subcommittee hearing focused on creation of American jobs through increased exports, and expansion and development of the U.S. maritime transportation system.
The Harbor Maintenance Tax is an ad-valorem assessment on imported and domestic cargo entering U.S. ports. Cargo can be subjected to multiple assessments of the tax if it is transshipped to another port in the U.S., creating a significant administrative barrier to waterborne transportation. Surface-based transportation, such as trucking or rail, does not face this barrier.
Rep. Cravaack also urged Congress to spend the money deposited into the Harbor Maintenance Trust Fund (HMTF) - funded by the HMT - for its intended purpose: maintenance dredging of the nation's waterways and harbors. There is a greater than $5 billion surplus currently in the HMTF, ready to be spent on dredging, Rep. Cravaack said.
"At a time when our nation's vessels are unable to carry full loads because of inadequate channel and harbor depths, it is imperative that we better utilize HMT funds to increase transportation productivity," he said.