Will California Container Tax Veto Hold?

California Governor Arnold Schwarzenegger rejected Senate Bill 927, which would have levied a $30 fee per twenty-foot-equivalent unit (TEU) on cargo containers moved through the ports of Los Angeles and Long Beach. Returning the bill to the California Senate unsigned, Schwarzenegger said in part, “This measure is flawed in its construction, application, lack of accountability and failure to coordinate with other public and private financing sources ignoring opportunities to leverage additional funding.”Schwarzenegger added, “This measure is drafted to include only two ports and applies only to goods shipped in containers, ignoring all other forms of shipping and ports of entry.” With a nod to the agriculture interests in his own state, Schwarzenegger also pointed out the fees would hit exporters and have the possible unintended consequence of impacting the sale and delivery of goods grown and manufactured in California.A goods task force appointed by the governor is developing a comprehensive report he says will provide a more thorough and strategic direction and insight on the best options to address goods movement and port-related challenges. He says the report will be available by the end of the year.

See: Higher Costs and Scrutiny For Containers