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View Full Version : HAL disputes RR car taxes in Alaska


tomc
January 6th, 2005, 12:51 AM
I'm posting more than the usual short "tease" because this probably won't still be online for very long. The article goes into more detail than the excerpt I've put here. It's from the Anchorage Daily News and, if it works, here's the URL:

www.adn.com/front/story/5981797p-5882651c.html


A few days ago, in the dead of winter, a string of McKinley Explorer passenger cars owned by cruise-ship company Holland America rolled, empty, from Anchorage north about 50 miles to the Pittman area west of Wasilla. There, on a lonely, snowy siding, the cars were disconnected from the locomotive and left.

And that's where they'll stay pending resolution of a testy tax dispute between Anchorage officials and the cruise line, a company executive said Tuesday.

Holland America and at least one other rail-car owner are contesting higher property taxes that Anchorage officials want to impose on the cars.

By moving the eight cars out of town, Holland America hopes to minimize the amount of time they spend inside the Anchorage municipal limits and thus save money under the city's new property tax formula, said John Shively, the company's Anchorage-based vice president of government and community relations.

"This is not an issue of not wanting to pay any taxes," he said. "We've been paying property taxes right along."

Rather, the problem is that city officials last summer changed the policy on how railroad cars are taxed, and "we don't think their reasoning was particularly valid," Shively said.

RuthC
January 6th, 2005, 06:44 PM
The URL worked, and the article made for interesting reading. Of course, if HAL has to pay the higher taxes it will have to raise the price of Alaska cruise/tours. A price that is already higher per day than other areas.

Looks like another example of a municipality wanting to raise revenue without raising taxes on the local voters---all the better to pick the pockets of visitors. Didn't some of the Alaska ports lose visits by cruise ships because they wanted to increase the tax on cruisers?

I wonder how high the cost can go before people look to other destinations.