Coast Guard Authorization Act of 2007 Proposes to Re-establish Authority for Taxes on Goods and Services on Navigable Waterways for Outfitters

The Coast Guard Authorization Act of 2007, H.R.2830 , currently under consideration by the House of Representatives, re-establishes the authority for state and local governments to levy sales taxes on goods and services delivered on navigable waterways (except for those vessels involved in foreign commerce, such as cruise ships). The bill, sponsored by Representative Oberstar (D-MN), has been marked up in the House Judiciary Committee and the Committee on Transportation and Infrastructure.

Even if your members of Congress are not on one of the committees cited in this alert, write them as soon as possible.

The House Committee on Energy and Commerce is likely to consider the bill sometime in early 2008. So, writing now is extremely important. Committee members are listed below.

In the Senate, the Committee on Commerce, Science and Transportation has jurisdiction over the Coast Guard Authorization bill. Members in Maine, Alaska, Oregon, West Virginia and Arizona have key Senators on the list.

Key Senators on that Committee are Chairman Senator Daniel Inoyue (D-HI), Ranking Republican Ted Stevens (R-AK), Chair of the Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard Maria Cantwell (D-WA), and Ranking GOP member on the Subcommittee Olympia Snowe (R-ME).

The following is the complete full committee membership: Senators Inoyue, John Rockefeller (D-WV), John Kerry (D-MA), Byron Dorgan (D-ND), Barbara Boxer (D-CA), Bill Nelson (D-FL), Maria Cantwell (D-WA), Frank Lautenberg (D-NJ), Mark Pryor (D-AR), Thomas Carper (D-DE), Claire McCaskill (D-MO), Amy Klobuchar (D-MN), Ted Stevens (R-AK), John McCain (R-AZ), Trent Lott (R-MS), Kay Bailey Hutchison (R-TX), Olympia Snowe (R-ME), Gordon Smith (R_OR) John Ensign (R-NV), John Sununu (R-NH), Jim DeMint (R-SC), David Vitter (R-LA) and John Thune (R-SD).

Members should contact and write their Senators and Representative requesting that the following language be eliminated from the Coast Guard Reauthorization bill.

Section 4(b) of the Act of July 5, 1884, commonly known as the Rivers and Harbors Appropriation Act of 1884 (33 U.S.C. 5(b)), is amended-

(1) by striking `or' at the end of paragraph (2)I;
(2) by striking the period at the end of paragraph
(3) and inserting `; or'; and (3) by adding at the end the following: `
(4) sales taxes on goods and services provided to or by vessels or watercraft (other than vessels or watercraft primarily engaged in foreign commerce).'.

For letters to the House of Representatives

The Honorable
U.S. House of Representatives
Washington, DC 20515

For letters to the Senate
The Honorable
United States Senate
Washington, DC 20510

Dear Representative (name of your Representative) or Senator:
I am writing to ask you to support deletion of Section 302 Goods and Services from the Coast Guard Authorization Act when this bill is considered. This section of the bill overturns provisions of the Rivers and Harbors Appropriate Act of 1884 that prevented vessels operating on navigable waters from being taxed by every local and state government through which they transit. It is equally disturbing that the bill exempts vessels involved in foreign commerce (cruise ships) from the tax, while allowing additional taxes on many small fishing operations and outfitters and guides. These small businesses often already pay fees to state licensing authorities and federal land managing agencies. Those fees are for state licenses and for other fees authorized under the Federal Lands Recreation Enhancement Act of 2004 and other authorities.

Seasonal businesses simply cannot withstand the onslaught of fees, higher fuel costs and health care costs descending on their operations. Please stand up for small business and remove Section 302 from the Coast Guard Authorization Act of 2007.

Thank you for your earnest consideration.

Sincerely,

__________________________

America Outdoors wrote a letter before mark-up in the other committees opposing the language. However, the provision has the support of local governments and will require strong action by AO members to prevent its passage. The Senate has not considered the bill, as yet. Even though the bill is out of two House Committees, writing key Congressman on those committees along with Senators is still important, since the bill will come back to the House for consideration of any changes after passage by the Senate.

Resources for finding your Senators or Representative:

A convenient site to find members of Congress by zip code:http://www.congress.org/congressorg/directory/congdir.tt
These sites are a source for listings of Representatives and Senators by state.
Representatives: http://www.house.gov/house/MemberWWW_by_State.shtml
Senators: http://www.senate.gov/general/contact_information/senators_cfm.cfm

Click through to the members of Congress websites and find their Washington DC office fax numbers.