Harbor Maintenance Trust Fund

Abstract

The status and the performance of the Harbor Maintenance Trust Fund (HMTF) are evaluated. The harbor maintenance tax (HMT) and HMTF were established by Title XIV of the Water Resources Development Act of 1986. The HMT is applied as a 0.125% ad valorem fee on the value of commercial cargo loaded or unloaded on vessels using federally maintained harbor projects. The HMTF is authorized to be used to recover 100% of the U.S. Army Corps of Engineers eligible operation and maintenance (O&M) expenditures for commercial navigation, along with 100% of the O&M cost of the St. Lawrence Seaway by the St. Lawrence Seaway Development Corporation, certain costs of the National Oceanic and Atmospheric Administration, and costs to administer the HMTF. The U.S. Supreme Court found that the HMT violated the export clause of the U.S. Constitution; as a result, the U.S. Customs Service halted HMT collections on U.S. exports in fiscal year 1998. However, the revenue stream from HMT collections on imports, domestic shipments, passengers, foreign trade zone cargo, and interest earnings should be sufficient to recover eligible expenditures for the foreseeable future.