INTERTANKO SUPPORTS SENATE BILL 145

In a letter to the Governor of California INTERTANKO has expressed its support for Senate Bill 145, which stipulates that for fuel purchased in California ports the portion consumed in state waters will be taxed but fuel consumed out of state will be exempted.

In a letter to The Honorable Gray Davis, Governor of California, INTERTANKO has expressed its support for Senate Bill 145, which extends the present partial sales tax exemption on the purchase of bunker fuel in California ports. Ships have paid, and will continue to pay a sales tax on that portion of fuel consumed to the next out of state port, but fuel consumed out of state will be exempted.

 

The letter states that because of the mobility of maritime assets and the extreme sensitivity of the industry to fluctuations in fuel prices, vessels simply avoid fuel purchases in jurisdictions with unfavourable tax policies affecting the retail price of this very important element of vessel operating costs. The vast majority of ports do not assess any tax on fuel purchased by ships trading internationally. Should SB 145 fail to be passed, and the full tax is imposed on California purchases, ships will simply exercise their option of purchasing elsewhere. The passage of SB 145 will protect California businesses and will keep California in the mainstream of international commerce.

 

The full letter can be viewed here.

 

Contact: Dragos Rauta, e-mail: dragos.rauta@intertanko.com