| 20 July 2010
Update - Latest News on Legislation
Could Authorize New Taxes on Your Services on Navigable Waters
You still have time to respond to sales tax issue in H.R. 3619. An early post said that Sec. 301 of the Coast Guard Authorization bill (H.R. 3619) may be completed by mid-June. It is likely the bill will spill over to the lame duck session and there is still time to let your thoughts be known. Please see the update below provided by America Outdoors Association.
Sec. 301 of the Coast Guard Authorization bill (H.R. 3619), may be slowly running aground thanks to our concerted efforts. (But do not let up.) Sec. 301 authorizes state and local governments to levy new taxes on good and services delivered on navigable waters. Foreign commerce is exempted. The provision was included in the U.S. House of Representatives’ version of H.R. 3619, which passed last fall, but was not in the Senate bill, which passed this spring. The differences between the two versions of the legislation are being negotiated now. Currently fees for services to enhance safety and security (regulation and docking fees) are legal. Sec. 301 would open the door to multiple layers of taxation on outfitters, fishing guides and tour boats. The provision has nothing to do with the Coast Guard. It simply authorizes new taxes on federally navigable waters.Here is what one Senate aide said about the status of Sec. 301.
“The support for Section 301 is coming from a small borough (county) in Alaska that wants to tax fishing guides that are taxed in another county but use the services in theirs. As you can imagine, the Committee is hearing from a lot of fishing guides from around the nation who are opposed to 301”.
Alaska does not have a state sales tax, but a local option tax authority which allows both counties and cities to levy sales taxes.
Democrats and Republicans on the conference committee in the Senate appear to be opposed to Sec. 301. We need to focus efforts in the House of Representatives, where the language originated. Rep. Mica (R-FL), Rep. Oberstar (D-MN) and other Representatives are now the key players who will decide the fate of this measure.
Contact Your Senators and Representatives. Ask them to ensure that the language in Sec. 301 or similar taxing authority is not in the final Coast Guard Authorization bill. Your members of Congress may be reached through the Capitol switchboard: House of Representatives 202-225-3121. Senators: 202-224-3121. Ask to be connected to your Senator or Representative. The bill number, H.R. 3619, is the same in the House and the Senate. If you do not know who your U.S. Representative is go to http://www.congress.org and type in your zip code for their contact information. Congress.org is a non partisan website with information about how Congress works and is not affiliated with any party.
What to say when you call: Be polite. Ask for the staffer handling Transportation and Commerce issues. Ask them to oppose inclusion of Sec. 301 in the Coast Guard Authorization (H.R. 3619). Sec. 301 authorizes new taxes on services delivered on navigable waters. Sec. 301 has nothing to do with the U.S. Coast Guard. It is simply a tax authorization measure tacked on to the Coast Guard Authorization bill. So, removing Sec. 301 will not impact the U.S. Coast Guard in any way. Ask your members of Congress to help keep Sec. 301 out of the final Coast Guard Authorization bill.
