State Taxation

Status: A broad, organized tax reduction community has formed where none existed before. Legal teams are identifying a wide range of strategies to eliminate or lower tax levels. These include legislation and court challenges, including constitutional questions surrounding the Commerce Clause.

Issue: Federal regulations restrict state taxation of marine assets engaged in interstate freight business, with the exception of personal property taxes. States have implemented those plus a number of corporate and use taxes. The impact of these measures reached a level requiring action.

Channel Design Group and industry leaders pinpointed trouble states and aligned numerous companies in task forces. We mustered resources to provide national tax legislative reporting. Our team identified federal statutes that support state taxes on maritime equipment and began investigations to repeal applicable clauses.