Tax Return Preparation

Owners of cruising vessels who pay millions of dollars each year in federal motorboat fuel taxes will soon see a return on their investment. The federal government is about to provide $32 million to the states over the course of the next three years to build transient facilities and enhance recreational opportunities for some 600,000 Americans who own boats 26 feet and larger. Individuals and communities with ideas on how the money should be spent should speak up now and get involved.
Known as the federal Boating Infrastructure Grant (BIG) program and pushed through Congress in 1998 by BoatUS and the American League of Anglers and Boaters, the program is designed to:

• Enhance access to recreational, historic, cultural, natural and scenic resources for owners of non-trailerable boats;
  
• Strengthen community ties to the water’s edge and provide economic benefits;
  
• Provide public access from the water to the shore and promote awareness of transient boating opportunities.
  

Lt. Col. Charlie Clark of the Louisiana Dept. of Fish and Wildlife says that the BIG program will go over real big, especially in small towns along the Intracoastal Waterway, as well as those near the mouth of the Mississippi River like Houma, Lake Charles and Grand Isle. “There are many coastal towns and villages down here that can see the economic benefit in building transient facilities and would throw out the welcome mat for cruising boaters,” said Clark. “I can see why Sen. John Breaux (D-LA) got behind this bill.”
Such is already the case in Michigan, where the state has built a network of safe harbor facilities for cruising boaters every 15 miles along the Lake Michigan shoreline over the past three decades. According to Paul Curtis of the Michigan Department of Natural Resources, recreational boating has a $2.4 billion impact on the state’s economy and one-third of that amount is attributable to non-trailerable boating activity.
“These facilities not only add to the economic viability of communities, but also to the quality of life of its citizenry,” said Curtis.
The $32 million about to be dispersed is part of the tens of millions of dollars that recreational boaters pay each year in federal motorboat fuel taxes. These funds are deposited into the Aquatic Resources (Wallop/Breaux) Trust Fund. Until now, nearly all of the projects funded by Wallop/Breaux have been launching ramps that primarily benefit smaller, trailerable boats.
In pushing the legislation through Congress over a four-year period, BoatUS noted that although boats 26 feet and larger constitute only about 5% of the boats on the water, they contribute as much as 15% of all the gas taxes collected because of their larger engines.
Drafted by the U.S. Fish and Wildlife Service of the U.S. Department of the Interior, the federal regulations to implement the BIG program appeared in the Federal Register last January 20. As envisioned, the BIG program will provide funding for a veritable cornucopia of facilities all along the navigable waters of the U.S., including:

• Mooring buoys;
• Day docks (non-trailerable tie-up facilities that do not allow overnight use);
  
• Seasonal slips (allowing a maximum consecutive stay of 10 days);
  
• Safe harbor facilities that will provide temporary safe anchorage or a harbor of refuge during a storm;
  
• Floating and fixed piers and breakwaters;
  
• Dinghy docks;
• Restrooms, retaining walls, bulkheads, dockside utilities, pumpout stations and recycling and trash receptacles;
  
• Navigational aids (channel markers and buoys).
  

Going Deep
All BIG facilities must be built in waters deep enough for boats 26 feet and larger to navigate at a minimum of six feet of depth at low tide. One-time dredging will be allowed to provide access between open water and the tie-up facility and, although navigational aids may be installed, they will be limited to allowing safe passage between open water and the facility. Additionally, structures built with these federal funds will be expected to last at least 20 years.
Dave Obern of the Oregon State Marine Board is hoping to build a whole system of transient tie-up facilities on the Columbia and Willamette rivers that will link to cultural or historic attractions. He’s also eyeing links to marine islands that might be attractive as ecological excursions for cruising boaters. “Our state is anxious to get to work for our non-trailerable boating customers,” said Obern.
While the range of facilities available for funding is quite broad, there are a number of activities which are ineligible for funding, including:

• Projects that are not open to the public or provide a public use;
  
• Projects that significantly degrade or destroy valuable natural resources or alter the cultural or historic nature of the area;
  
• Launch ramps and other facilities primarily designed for trailerable boats less than 26 feet in length;
  
• Law enforcement, dry land storage, maintenance dredging, operations or routine maintenance.
  

Although the proposed regulations specifically preclude funding of projects for trailerable boats, the regulations allow boats less than 26 feet in length to use those facilities built for larger vessels under the BIG program.
And, while reasonable fees may be charged for using facilities based on the prevailing rates in the area, it is also clear that the federal government does not want the states to build facilities with public funds that unfairly compete with private sector facilities that are already nearby.
Whom To Contact
Regulations require each state to identify one agency contact, typically someone in a state’s Department of Natural Resources. Anyone with an idea for project funding should get directly in touch with these officials. To generate as much public participation as possible, BoatUS has put the name, phone number and address of each state contact on its Web site. You can access this information at www.boatus.com/gov.
The BIG program will be phased in over three years. The first grant cycle will distribute $16 million. Grant proposals will be accepted between May 30, 2000 and November 3, 2000. Grant selections will be announced by January 13, 2001.
The second grant cycle will distribute $8 million. Proposals will be accepted between February 1, 2001 and May 1, 2001 and grant selections will be announced August 10, 2001. The third and final grant cycle will also distribute $8 million. Proposals will be accepted between February 1, 2002 and May 1, 2002 and the grant selection announcement will be made by August 10, 2002.
Not much is known at this point about what criteria a state will use to determine which projects it will recommend for federal funding. In Maryland, however, Chip Price of the Department of Natural Resources says the state is planning to conduct a “user needs survey” this spring to get a better idea of what it is that boaters would like to see built.
When the states finally submit their proposals to the federal government, U.S. Fish and Wildlife officials will rank the proposals received from the states and give bonus points based on the following criteria:

To ensure that all states get a share of the BIG program, funding will be decided on a two-tiered approach. In the first tier, all states will get at least $100,000 if they meet the BIG program guidelines. Furthermore, while a state may submit one proposal under tier one for funding multiple projects, the total cost for all of the projects may not exceed $100,000.
The tier two program, which involves all remaining funds, has no dollar limit and is intended for larger and more expensive projects. These funds will be distributed on a nationally competitive basis.
And boating officials in South Carolina, the home state of Sen. Fritz Hollings (D-SC) who gave the BIG program a big push through Congress, anticipate building a few high-profile projects.
“We’re looking to build an ‘event access facility’ to host king mackerel and billfish tournaments in conjunction with a new city marina planned for Charleston Harbor on the site of an old Navy base,” says James Duke of South Carolina’s Department of Natural Resources. “We’re very excited and this program is coming on line just at the right time,” he said.
By Michael G. Sciulla
Copyright BoatUS, 2000
http://boatus.com/
 

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