Washington box tax meets resistance
A proposal to levy a US$50 per TEU tax on containers travelling between Washington state and Alaska has met resistance from cargo owners and freight forwarders in Alaska, as well as officials at the ports of Seattle and Tacoma.
The duty is intended to fund road and rail projects designed to relieve container congestion in port areas by raising an estimated $287 million in the next two years, a report by the Alaska Journal of Commerce said, adding it would grow to an estimated $433 million between 2009 and 2011.
Port officials say the tax will increase the cost of moving containers through the ports of Tacoma and Seattle from $200 to $300, making it harder to compete with rival neighbouring ports.
Looking on the bright side, critics of the legislation claim that Senate Bill 5207, which was sponsored by state Democratic Senator Mary Margaret Haugen from Camano Island, will not be passed as it is better suited to the international container trade.
The Alaska Legislature already issued a joint resolution earlier this month opposing the tax. The resolution calls on the Washington state Legislature to find alternative means to generate additional revenue for port infrastructure improvement projects, particularly as 97 per cent of all goods shipped to Alaska are transported by ocean-going vessels.
The decision to pass or amend the bill rests with the Washington Legislature's Executive Committee.
The duty is intended to fund road and rail projects designed to relieve container congestion in port areas by raising an estimated $287 million in the next two years, a report by the Alaska Journal of Commerce said, adding it would grow to an estimated $433 million between 2009 and 2011.
Port officials say the tax will increase the cost of moving containers through the ports of Tacoma and Seattle from $200 to $300, making it harder to compete with rival neighbouring ports.
Looking on the bright side, critics of the legislation claim that Senate Bill 5207, which was sponsored by state Democratic Senator Mary Margaret Haugen from Camano Island, will not be passed as it is better suited to the international container trade.
The Alaska Legislature already issued a joint resolution earlier this month opposing the tax. The resolution calls on the Washington state Legislature to find alternative means to generate additional revenue for port infrastructure improvement projects, particularly as 97 per cent of all goods shipped to Alaska are transported by ocean-going vessels.
The decision to pass or amend the bill rests with the Washington Legislature's Executive Committee.
