Container taxation proposed
Containers of precious goods like furniture, food items, paper, clothing and other key commodities give a valuable service. However, a council in the US has proposed container taxation. The containers that move to and from the Newark City area have come under the City Council’s scanner.
For the local council, the empty containers, which linger there for months at times, are potential cash cows. The council members argue that these containers take up prime real estate and hence must be taxed.
Two council members recently introduced legislation, which would authorise the council for imposing tax on empty shipping containers, remaining unmoved for more than 30 days. The bill is similar to a proposal, which Sharpe James, a former mayor and state senator, introduced in 2004.
Newark deputy mayor for economic development, Stefan Pryor, stated:
“If a parcel of land was to contain a structure instead of containers, it would have real estate taxes. If it had a surface parking lot, there would have been a parking tax. If containers are parked on a parcel, the city yields no revenue other than the land taxes.”
The city wants to tax empty containers that sit for more than 30 days. After 30 days, a container would get charged for each day it sits. The fee would be increased further with each passing month. The container industry is understandably upset with the proposal.
