Long Beach port delays infrastructure container tax

Long Beach port delays infrastructure container tax Port of Long Beach commissioners on Monday delayed the impending collection of a $15-per-TEU container tax intended to raise more than $1.4 billion for infrastructure projects with port and the neighboring Port of Los Angeles.
   The delay will push back the estimated Jan. 1 start date the port planned to begin collecting the tax by six months to one year, according to port staff reports.
   The port, in a joint move with the Port of Los Angeles, approved the container tax in January 2008 and intended to collect the fee through 2015.
   'Because of the extra time needed to complete the planning and approval process for these many projects, the ports felt it was sensible to delay the implementation of the fee,' said J. Christopher Lytle Port of Long Beach deputy executive director.
   In explaining the request for the delay, port staff explained to the five-member Long Beach port commission that after reviewing proposed project schedules and costs, the $15-per-TEU tax was found to be 'excessive' due to the small costs likely to be incurred by projects during 2009. The staff review concluded that an appropriate amount for the tax based on the revised projects schedules and costs would have been $6-per-TEU.
In approving the delay, the port board also agreed to consider adjusting the delayed container tax down to the $6 rate by July 1.
   'We’ll reassess the situation in six months to see it if makes sense to start the fee then,' Lytle said.
   According to a revised tax rate schedule presented by staff to the board Monday, the tax would vary from $6 to $20 per TEU per year through 2016. The rate is intended to fluctuate as the needs of construction on bridge, road and rail projects within the two ports.
   'Happily, this comes at a time when the industry is reeling,' said Long Beach Commission President James Hankla. 'It is not a good time to be collecting fees.'
   According to port staff, the Port of Los Angeles commission will take similar action to delay the collection of the tax during their public meeting on Dec. 18.