The Harbor Maintenance Trust Fund: Collecting Funds Necessary to Maintain Our Waterways
Abstract
The Harbor Maintenance Tax (HMT) was established by the Water Resources Development Act of 1986, and is applied on an ad valorem basis on the worth of commercial cargo involved in any port use of federally maintained harbor projects. The phrase "port use" means loading or unloading of commercial cargo to or from a commercial vessel at a port. In this case, port refers to any U.S. harbor or channel (or component thereof) that is not a fuel-taxed inland waterway, and is open to public navigation. U.S. Customs and Border Protection maintains the list of applicable ports, which primarily include deep-draft port and harbor complexes. The commercial cargo that is subject to the fee is any cargo transported on a commercial vessel, and passengers transported for compensation or hire. But not including bunker fuel, ship's stores, sea stores, the equipment necessary for the operation of a vessel, and any fish or other aquatic animal life caught and not previously landed on shore. In 1986, 0.04 percent of the value of the cargo was subject to the tax. The Omnibus Budget Reconciliation Act of 1990 increased the tax from 0.04 to 0.125 percent, where it remains today. This money is deposited into the Harbor Maintenance Trust Fund, or HMTF. As the name implies, these funds are spent to maintain our waterways. The tax is generally imposed against most imports, foreign trade zone cargo, passengers not aboard ferries, and about 38 percent of domestic shipments. This article discusses the HMTF in relation to the following entities/topics: Eligible Expenditures, U.S. Army Corps of Engineers, St. Lawrence Seaway Development Corporation, National Oceanic and Atmospheric Administration, Department of Homeland Security, Court Challenges, World Trade Organization Consultations on the HMTF, Total Waterborne Commerce, States and Territories, Recent Trends, Expenditures for USACE Operation and Maintenance, and Maintenance Dredging.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2011
- Accession Number
- ADA552596
Entities
People
- Pat Mutschler
Organizations
- United States Army Corps of Engineers