EP 1165-2-1
30 Jul 99
increasing the tax schedule and adding the Tennessee-Tombigbee
Waterway to the original list of taxable waterways. The Inland
Waterways Tax applies only to those segments of the inland waterways
specified in Section 206 of Public Law 95-502 as amended, and are
differentiated from coastal harbors, Great Lakes channels and harbors,
and deep-draft segments of certain inland rivers. The fuel tax
schedule became effective on 1 October 1980, at which time the tax was
4 cents per gallon increasing to 10 cents per gallon on 1 October 1985
on fuel used in commercial transportation on specified inland
waterways. WRDA 1986 established a new schedule:
Before
1990....................10 cents per gallon.
During
1990....................11 "
"
"
During
1991....................13 "
"
"
During
1992....................15 "
"
"
During
1993....................17 "
"
"
During
1994....................19 "
"
"
During
1995(and beyond)........20 "
"
"
The Inland Waterways Fuel Tax does not apply to deep-draft (draft of
more than 14 feet) ocean-going vessels; passenger vessels; state or
local government vessels used in official business, movements of LASH
and SEABEE barges, or recreation craft.
b. Inland Waterways Trust Fund. Section 1405 of WRDA 1986
amended Sections 203 and 204 of Public Law 95-502 which originally
established the Inland Waterways Trust Fund (IWTF). Expenditures from
the fund may be made available, as provided by appropriation Acts, for
making construction and rehabilitation expenditures for navigation on
those Inland Waterways described in Section 206 of Public Law 95-502
as amended. It is the policy of the Corps that these projects be cost
shared 50 percent from the IWTF. It is the responsibility of the
Secretary of the Treasury to manage the trust fund and make money
available as authorized by law. The responsibility for administering
the Inland Waterways Fuel Tax is with the Internal Revenue Service
(IRS). Inquiries from outside the Corps should be referred to the
Legislation and Regulations Division, Office of the Chief Counsel, at
the Internal Revenue Service, Washington, D.C. 20224.
c. Inland Waterways Users Board. Section 302 of WRDA 1986
established an Inland Waterways Users Board of eleven members,
representing both shippers and primary users, to be selected by the
Secretary of the Army. The Users Board is to make recommendations to
the Secretary regarding construction and rehabilitation priorities and
spending levels on the commercial navigational features and components
of the inland waterways and inland harbors of the United States. The
Users Board report is filed annually with the Secretary and with the
Congress, and is to make recommendations for the following fiscal
year. The first meeting of the Inland Waterways Users Board was held
on 15 July 1987.
d. Tolls. Effective October 1, 1994, tolls for the use of the
U.S. portion of the St. Lawrence Seaway were rescinded (Public Law
103-331).
e. Harbor Maintenance Fee (HMF). Section 1401 and 1402 WRDA
of 1986 amended Chapter 36 of the Internal Revenue Code of 1954
(relating to certain other excise taxes) and imposed a fee on the use
of any port upon which has been made a Federal expenditure for
12-11
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