Washington, D.C. – Transportation and Infrastructure Committee Republicans have called on House colleagues to pass legislation to exempt the transport of domestic cargo via the nation’s coastal and inland waterways from the Harbor Maintenance Tax (HMT).
Supporters include Committee Republican Leader John L. Mica (R-FL), Coast Guard and Maritime Transportation Subcommittee Ranking Member Steve LaTourette (R-OH), and Water Resources and Environment Subcommittee Ranking Member John Boozman (R-AR), as well as 25 other Republicans, including 23 Members of the Committee.
“With congestion clogging the nation’s highways and rails, our underutilized waterways can provide real relief by transporting significantly more freight, and can do it in a more environmentally friendly manner,” Mica said. “But there’s a disincentive to short sea shipping because the Harbor Maintenance Tax is imposed indiscriminately at every port. This often leads to single cargoes traveling between American ports being taxed multiple times.”
According to existing law, all cargoes transported to a U.S. seaport are subject to the HMT, a duty equal to 0.125 percent of a cargo’s declared value or the value of passenger tickets.
In a letter to Ways and Means Committee Chairman Rangel and Ranking Member McCrery, the Committee Republicans said, “As a result of the HMT, volumes of domestically transported cargo by vessel are fairly low and revenues derived from the imposition of the HMT on such movements are miniscule as compared to receipts from international routes. The exemption of domestic vessel transportation from the HMT will not result in any significant loss of revenues, but it will promote alternatives to heavily congested rail and truck routes.”
Constructing additional surface transportation infrastructure to accommodate the projected growth in domestic freight (over 65% between 1998 and 2020) will require billions in investment. However, our marine highways are effectively ready to take on more freight immediately, with tremendous fuel efficiency. Estimates show that fuel use for moving a ton of cargo by truck is 20 miles per gallon, by rail is 435 miles per gallon, and by barge is as much as 1,000 miles per gallon.
The Members urged the Ways and Means Committee to take action by the end of the year on the several HMT exemption bills that have been introduced in the House.
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