EconPapers    
Economics at your fingertips  
 

A statistical approach to US harbor maintenance tax rates and replacement user fees

Christopher McIntosh and Randall K Skalberg ()
Additional contact information
Randall K Skalberg: Accounting Department, University of Minnesota Duluth, 1318 Kirby Drive, Duluth, Minnesota 55812, LSBE 360M, USA.

Maritime Economics & Logistics, 2010, vol. 12, issue 3, 263-279

Abstract: The US Harbor Maintenance Tax (HMT) is not fulfilling its intended goal. It has led to a payment imbalance between port user groups (exporters do not pay thereby leading to consultations regarding General Agreement on Tariffs and Trade (GATT) violations) and large surpluses, which have created a burgeoning trust fund balance. Statistical analysis does not support the current HMT rate; investigation reveals the HMT rate could be reduced to 0.09 per cent from 0.125 per cent. Further, as there is no evidence that value is highly correlated with costs (regardless of functional form) a possible method for designing a national user fee structure to replace the HMT is presented. This structure would be compliant with the US Supreme Court requisites for a user fee; it includes variables such as tonnage, port stay and draft, which are found to be correlated with costs using regression analysis. In addition, a method to statistically derive appropriate fee weights (rather than arbitrarily assigning) for each of these variables is outlined and illustrated by a numerical example. Currently, missing data represent a severe restriction to the design and appropriate implementation of user fees in the United States; these data could be collected but not without new procedures and incurring additional costs.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/mel/journal/v12/n3/pdf/mel20107a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/mel/journal/v12/n3/full/mel20107a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:marecl:v:12:y:2010:i:3:p:263-279

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2

Access Statistics for this article

Maritime Economics & Logistics is currently edited by Hercules E. Haralambides

More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2020-10-04
Handle: RePEc:pal:marecl:v:12:y:2010:i:3:p:263-279