Navigable Waters Letters
LETTER # 1
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Dear Senator Stevens,
I would like to speak to you with regard to Alaska Borough's attempting to collect illegal taxes
from Alaskan residents. The specific borough & tax references regard a Federal Navigable Waters
Sales Tax which the Kenai Peninsula Borough has been collecting illegally.
In 2003 The Maritime Security Transportation Act (MTSA), TITLE 33 NAVIGATION
AND NAVIGABLE WATERS, was passed into Federal law and specifically mandated
that U.S. States cannot legally tax Federal Navigable Waterways. The KPB has been
disregarding Title 33 and illegally taxing passage and operations on these navigable
waterway anyway.
We informed the KPB of its illegal taxation of navigable waters in May of 2006.
Instead of just removing the illegal tax, the KPB contacted many legislator's in an attempt to
make navigable waters taxation legal. The prohibition of this kind of taxation has
been in effect since 1884 and was reinforced in 2003 within the wording within TITLE 33
NAVIGATION AND NAVIGABLE WATERS.
In the summer of 2006, the KPB requested that Representative Don Young sponsor legislation
to allow navigable waters taxation. Representative Young sponsored ( H.R. 5681 Title: To authorize
appropriations for the Coast Guard for fiscal year 2007, and for other purposes.]
H.R. 5681 has already passed the U.S. House and is now being considered by the U.S. Senate.
Section 302 of H.R. 5681, repeals most of the prohibitions on confiscatory taxes prohibited by
Section 445 of our current Maritime Security Transportation Act (MTSA) of 2002, and the
Rivers and Harbors Act of 1884.
In 2002 the Conference Report addressed the importance of Section 445:
Section 445 addresses the current problem, and the potential for greater future problems, of local
jurisdictions seeking to impose taxes and fees on vessels merely transiting or making innocent
passage through navigable waters subject to the authority of the United States, which are adjacent
to the taxing community.
Furthermore, Section 302 appears to exempt vessels engaged in foreign commerce, which enter
U.S. waters and provide goods and services, while taxing those operating domestically.
I am hereby requesting that you do what you can to remove Section 302 from H.R. 5681 as I see it
being extremely counter to our public interests to have literally thousands of local jurisdictions
attempting to tax vessels trying to make passage through Federal navigable waters.
Please Remove Section 302 from H.R. 5681.
Thank you.
Sincerely yours,
Don Johnson
P.O. Box 876
Soldotna, Alaska 99669
ccpwow@gci.net
LETTER # 2
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Dear Senator Stevens,
As a small business providing recreation services to the public my business is already
subject to access and permit fees along with cost recovery administration fees
and many others. I strongly object to Section 302 of H.R. 5681, which will enable
multiple government entities to tax my services especially when my trips enter
different Borough jurisdictions.
A prohibition on these taxes on domestic goods and service provided on navigable
waterways has existed since 1884 for good reason. The 2002 Conference Report
on the Maritime Safety Transportation Act stated:
Section 445 addresses the current problem, and the potential greater future problems,
of local jurisdictions seeking to impose taxes and fees on vessels merely transiting or
making innocent passage through navigable waters subject to the authority of the
United States that are adjacent to the taxing community . . .
More over this provision exempts foreign commerce, such as cruise ships, entering
navigable water in the U.S. while taxing my services. Operating a recreation and tourism
business is increasingly difficult in this country due to the onslaught of fees, regulations
and increasing operating costs. I agree with how this issue has been addressed in the
past by not allowing navigable waters taxation. I do not agree with the changes which
are being proposed within SEC. 302 of H.R. 5681
Please help remove SEC. 302 of H.R. 5681
Thank you.
Sincerely yours,
Don Johnson
P.O. Box 876
Soldotna, Alaska 99669
ccpwow@gci.net
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THE WAY TITLE 33 READS NOW.
Below is the way Title 33 currently reads. Rep. Young wants to change the
current wording of Title 33, Chapter 1, Sec. 5a. so that borough can legally
collect taxes on navigable waters.
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TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER 1--NAVIGABLE WATERS GENERALLY
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 5. Abolition of tolls on Government canals, canalized
rivers, etc.; expense of operation, repairs to and
reconstruction of canals, etc.; Panama Canal excepted; levies by
non-Federal interest
(a) No tolls or operating charges whatever shall be levied upon or
collected from any vessel, dredge, or other water craft for passing
through any lock, canal, canalized river, or other work for the use and
benefit of navigation, now belonging to the United States or that may be
hereafter acquired or constructed; and for the purpose of preserving and
continuing the use and navigation of said canals and other public works
without interruption, the Secretary of the Army, upon the recommendation
of the Chief of Engineers, United States Army, is authorized to draw his
warrant or requisition, from time to time, upon the Secretary of the
Treasury to pay the actual expenses of operating, maintaining, and
keeping said works in repair, which warrants or requisitions shall be
paid by the Secretary of the Treasury out of any money in the Treasury
not otherwise appropriated: Provided, That whenever, in the judgment of
the Secretary of the Army, the condition of any of the aforesaid works
is such that its entire reconstruction is absolutely essential to its
efficient and economical maintenance and operation as herein provided
for, the reconstruction thereof may include such modifications in plan
and location as may be necessary to provide adequate facilities for
existing navigation: Provided further, That the modifications are
necessary to make the reconstructed work conform to similar works
previously authorized by Congress and forming a part of the same
improvement, and that such modifications shall be considered and
approved by the Board of Engineers for Rivers and Harbors and be
recommended by the Chief of Engineers before the work of reconstruction
is commenced: And provided further, That nothing contained in this
section shall be held to apply to the Panama Canal.
(b) No taxes, tolls, operating charges, fees, or any other
impositions whatever shall be levied upon or collected from any vessel
or other water craft, or from its passengers or crew, by any non-Federal
interest, if the vessel or water craft is operating on any navigable
waters subject to the authority of the United States, or under the right
to freedom of navigation on those waters, except for--
(1) fees charged under section 2236 of this title; or
(See Below --> ? 2236. Port or harbor dues.) ********************************
(2) reasonable fees charged on a fair and equitable basis that--
(A) are used solely to pay the cost of a service to the
vessel or water craft;
(B) enhance the safety and efficiency of interstate and
foreign commerce; and
(C) do not impose more than a small burden on interstate or
foreign commerce.
(3) property taxes on vessels or watercraft, other than vessels
or watercraft that are primarily engaged in foreign commerce if
those taxes are permissible under the United States Constitution.
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+33USC5
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THE WAY TITLE 33 Will Read if H.R. 5681 Passes
With The Section 302 Changes.
SEC. 302. GOODS AND SERVICES.
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)(C);
(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).'.
http://www.congress.gov/cgi-bin/cpquery/R?cp109:FLD010:@1(hr614)
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What H.R. 5681, Section 302 Is Attempting To Do
H.R. 5681, Section 302 attempts to change the ban on local navigable waters taxation and
instead allows local vessels to be taxed by local governments, while foreign vessels, like
"cruise ships," are exempted!
U.S. vessels like fishing charters, rafting trips and similar trips operating in navigable waters in
the U.S., will basically be the only folks subject to these navigable waters taxes!
The Coast Guard Reauthorization bill, H.R. 5681, which passed the U.S. House and is now
under consideration by the Senate, includes a provision that reinstates local taxes on goods
and services provided on navigable waterways. The prohibition on taxing navigable waterways
has been in effect since 1884 and was reinforced in 2002. Section 302 repeals most of the
prohibitions on confiscatory taxes prohibited by Section 445 of the Maritime Security Transportation
Act (MTSA) of 2002, and the Rivers and Harbors Act of 1884.
In the 2002 the Conference Report addressed the importance of Section 445:
Section 445 addresses the current problem, and the potential for greater future problems,
of local jurisdictions seeking to impose taxes and fees on vessels merely transiting or
making innocent passage through navigable waters subject to the authority of the
United States that are adjacent to the taxing community.
I personally do not believe local jurisdictions should be able to tax navigable waters.
I also believe it is completely unfair to allow foreign vessels to operate without this
same navigable waters taxation.
Please help remove Section 302 from H.R. 5681
Thank you.
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Below are the current Congressional Actions on
H.R. 5681, SEC. 302. GOODS AND SERVICES.
Once this bill is passed by the U.S. Senate the Kenai Peninsula Borough
will be able to legally collect a sales tax on all Alaska navigable waters.
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http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR05681:@@@X
H.R.5681
Title: To authorize appropriations for the Coast Guard for fiscal year 2007, and for other purposes.
Sponsor: Rep Young, Don [AK] (introduced 6/26/2006) Cosponsors (1)
Latest Major Action: 11/13/2006 Referred to Senate committee. Status: Read twice and referred to the
Committee on Commerce, Science, and Transportation.
House Reports: 109-614
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ALL ACTIONS:
6/26/2006:
Referred to the House Committee on Transportation and Infrastructure.
6/28/2006:
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
6/28/2006:
Subcommittee on Coast Guard and Maritime Transportation Discharged.
6/28/2006:
Ordered to be Reported (Amended) by Voice Vote.
7/28/2006 9:36pm:
Reported (Amended) by the Committee on Transportation. H. Rept. 109-614.
7/28/2006 9:36pm:
Placed on the Union Calendar, Calendar No. 354.
9/28/2006 10:30pm:
Mr. LoBiondo moved to suspend the rules and pass the bill, as amended.
9/28/2006 10:30pm:
Considered under suspension of the rules. (consideration: CR H7877-7886)
9/28/2006 10:51pm:
On motion to suspend the rules and pass the bill, as amended Agreed to by
voice vote. (text: CR H7877-7884)
9/28/2006 10:51pm:
Motion to reconsider laid on the table Agreed to without objection.
9/29/2006:
Received in the Senate.
11/13/2006:
Read twice and referred to the Committee on Commerce, Science,
and Transportation.
http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR05681:@@@X
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Rep. Don Young’s (R-AK) Committee authored this new H.R. 5681, SEC. 302. GOODS
AND SERVICES legislation to only tax small local business operator's on our navigable waters.
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Contact Congressman Don Young using the following information:
http://donyoung.house.gov/contact.htm
Contact Don Young - http://donyoung.house.gov/IMA/issue_subscribe.htm
Rep. Don Young's Website - http://donyoung.house.gov/
WASHINGTON, DC OFFICE
2111 Rayburn HOB
Washington, DC 20515
(202) 225-5765 - Phone (202) 225-0425 - Fax
email - http://donyoung.house.gov/IMA/issue_subscribe.htm
ANCHORAGE CENTRAL DISTRICT OFFICE
Office of Congressman Don Young
Peterson Tower Building
510 L St, Suite 580
Anchorage, Alaska 99501-1954
(907) 271-5978 - Phone
(907) 271-5950 - Fax
email - http://donyoung.house.gov/IMA/issue_subscribe.htm
http://donyoung.house.gov/contact.htm
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Senator Ted Stevens website- http://stevens.senate.gov/index.cfm
Senator Ted Stevens Email - http://stevens.senate.gov/contact.cfm
The Honorable Ted Stevens
United States Senate
522 Hart Senate Office Building
Washington, D.C. 20510
(202) 224-3004
(202) 224-2354 FAX
Please ask your Senator and Representative to remove Section 302 from H.R. 5681.
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