PMSA praise for California bunker tax law
The Pacific Merchant Shipping Association (PMSA) has commended California Governor Jerry Brown's Monday signing into law bill SB 1243, legislation that extends the partial sales tax exemption on bunkers by 10 years from January 1, 2014 to January 1, 2024, Ship & Bunker reports.
"We're very pleased Gov. Brown understood this legislation is needed to keep the marine fuel industry alive and well in our state," PMSA vice president John Berge said in a statement.
"He recognized the strong support we had for this bill from Democrats and Republicans, labor, business and port cities, and he heard the non-partisan Legislative Analyst's Office when it forecast further job losses if the exemption was allowed to sunset," he added.
The state of California offers the exemption to the marine fuel "consumed after reaching the first out-of-state destination," which also includes the entry point of the Panama Canal even if the carrier is only transiting the canal.
Senator Alan Lowenthal, D-Long Beach, who wrote the bill said it would help California ports stay competitive and mean that maritime vessels will continue to have access to "some of the cleanest maritime fuel in the world."
"In the case of the marine fuel sales tax, we have a case backed up by evidence. The exemption has gone away twice, and each time we saw the same economic impacts," Lowenthal said.