Commercial Maritime Industry: Updated Information on Federal Assessments. Testimony

782238PDFResearch PaperReport No: GAO/T-RCED-00-36Maritime industryAssessmentsTypes of taxesUnited States. General Accounting OfficeUnited States. Government Accountability OfficeNTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCENTL-LAWS AND REGULATIONS-Federal LawsUS Transportation CollectionThis is the Statement of John H. Anderson, Jr., Director, Transportation Issues, Resources, Community, and Economic Development Division, Before the Subcommittee on Water Resources and Environment, Committee on Transportation and Infrastructure, House of Representatives on federal assessments - user fees, taxes, and other charges - levied on the commercial maritime industry. This testimony summarizes a report issued by the General Accounting Office in September, 1999, updating a previous report on federal assessments levied on the commercial maritime industry. This statement will provide information on (1) the federal agencies that levied assessments in fiscal year 1998 compared with fiscal 1991, the number of assessments levied, and the amounts they collected; (2) who pays the assessments and in which funds they were deposited in fiscal years 1991-1998; and (3) new federal assessments that have been recently proposed. In addition, this statement provides information on the current status of the Harbor Maintenance Trust Fund, and the projected annual balances of the fund. Briefly, it was found that 11 different federal agencies currently levy 124 different assessments on the commercial maritime industry. In 1998, the Customs Service collected the largest portion of the assessments - almost $21 billion of the nearly $22 billion collected. Shippers (importers and exporters) pay the largest portion of the assessments, more than $20 billion of the total $22 billion. Two new federal assessments have been proposed - a Harbor Services User Fee, as a replacement for the existing Harbor Maintenance Tax; and a fee for granting permits for fishing in federally managed fisheries. At the end of fiscal year 1998, the Harbor Maintenance Trust Fund had a balance of $1.3 billion. The balance is projected by the U.S. Army Corps of Engineers to increase to $2.5 billion in fiscal year 2004