Waterway Improvement Fund background and issues summary, 2004

WIF BACKGROUND WIF was established in 1966 to expand capabilities of MD to carry out our legislative mandates (Subtitle 7, State Boat Act). Revenues come from 5% excise tax paid when a vessel is titled in the State as well as 0.3% of state motor fuel tax ($33 Million 2004). WIF is in effect the Transportation Trust Fund for Maryland's recreational boaters (funds all infrastructure assoc, with public boating access: ramps, piers, slips, public landings, installing aids to navigation, dredging channels including those in cooperation with Corps of Engineers, ..etc). Uses of WIF funds are dictated by Statute - 1 1 purposes enumerated in Section 8-707 of the Natural Resources Article. The U.S. Army Corps of Engineers has substantially reduced federal funding over the past 2 years for local navigation projects which will place additional demands on the WIF. This may account for as much as $5M each year. LOCAL ISSUES WITH THE ASSOCIATION ■ The WIF gets 0.3% of the State motor fuel tax for boating related fuel purchases. Baltimore Marine Trades (BMT) has previously indicated that these funds (approx. $1.7 million in FY 05) should be used to supplement the operating costs at private marinas. These funds are currently used to complete boating access projects statewide (channel dredging, boat ramps, etc). ■ BMT has indicated in the past that the WIF should be exclusively used to dredge channels that benefit private marinas. DNR supports dredging public channels that benefit all Maryland boaters. ■ Some members of BMT have indicated in the past that they believe that only a small portion of the WIF is used to complete projects. In FY 04, 39% of the WIF was used to complete waterway improvement projects. In FY 07, 65% of the WIF was dedicated to completing projects. Other funds were used to support boating related activities such as installing navigation aids and funding the Natural Resources Police. ■ BMT does not support the use of the WIF for public marinas such as the Inner Harbor Marina (which primarily serves transient boats), Somers Cove Marina, or any local boating facilities that serve larger boats. Larger boats also contribute to the WIF. DNR provides funding for projects that provide both transient slips, resident slips, and slips for waterman that are not served by private marinas. ■ BMT has indicated to members of the Natural Resources Police that they are considering proposing that DNR use the WIF to finance the removal of abandoned boats in private marinas. DNR budgeted $500,000 in FY 07 from the WIF to remove abandoned boats and debris that impede navigation in state waterways. Such an action will result in significant legal implications or DNR and should be the responsibility of the private marina. DNR does not want to be responsible for removing private vessels from marinas whenever they don’t pay their slip fees. Marinas can address this issue via measures such as mechanic liens and legal action against delinquent slip holders/boat owners. ■ BMT will push the State Marine Trades Association of Maryland’s (MTAM) current proposal to extend the time limit to 120 days for boaters to not pay the vessel title tax. They will contend that such an action could attract more boats to Maryland and boost business for those in the 2