Alaska Trying to Tax Cruise Lines

[rjg41]

The residents of Alaska:

 

1) Have no income tax

2) Have no state sales tax

3) Got the highest percentage of federal money back per tax dollar they send to Washington. They have been #1 in this department most of the past 20 years and never less than #4 out of the 50 states. We all know about the bridge to nowhere.

4) Every resident, adults and children, gets a yearly payment from an oil fund ($846pp in 2005)

5) the resident tax burden (all state and local taxes) as a percentage of per capita income is the lowest of all 50 states (2005)

 

Now, per Cruise News Daily a ballot initiative (put on the ballot by a petition of Alaskans) will appear on the ballot in Alaska for the August 22, 2006 election.

 

Voters will be voting on a package of four tax measures:

 

1) to add a $46 tax on every cruise passenger.

2) add another $4 tax on every cruise passenger to cover the cost of an Ocean Ranger on each cruise ship to monitor its emissions

3) put a 33% tax on the cruise lines' gambling operations while in Alaska

4) make cruise lines subject to state corporate income tax, even though their vessels are foreign-flagged.

 

This from a state whose residents pride themselves on self-reliance.

[BigDoug]

It looks like the ballot initiative will pass with 52% of the vote.:( Micky Arison, CEO of Carnival Corp is not pleased: http://pacific.bizjournals.com/pacific/stories/2006/08/21/daily43.html

He is hinting at ship redeployment. It looks like the battle is just beginning.

[seamama1]

It looks like the ballot initiative will pass with 52% of the vote.:( Micky Arison, CEO of Carnival Corp is not pleased: http://pacific.bizjournals.com/pacific/stories/2006/08/21/daily43.html

He is hinting at ship redeployment. It looks like the battle is just beginning.

 

IMHO, that is precisely the purpose of the tax.....they want to discourage so many cruiselines from coming up there and messing up the place.

 

There is a very lively debate after the polling on the main page...outta read it.....pretty good stuff on there.

 

Mickey Arison is one smart cookie...his success speaks for himself. He will do what is best for his company. I'm sure he is not one to make a big stink about the whole thing. It is what it is...and will make the right decision for Carnival - just like he has always done.

[WeLuvVacation]

Ahhh America land of the free and home of the overtaxed.

 

Maybe the other 48 states should do a reverse tax on Alaska.

 

Since they have to import just about everything there.

 

Like food, etc.

[grandsix]

Tax has passed. Carnival was stock down today 8/24/06. They expect less revenue because this tax will deter cruises to Alaska. We cruise alot, but not to Alaska anymore.

[klondikejim]

I wont get into a political debate, but I have to say, I agree with the tax, of course, I am one of those tax burdonsom Alaska Residents. One member suggested here we reverse tax alaska. Believe you me, we allready are. Any online purchases made, shipping is by default double, reguardless if the actual cost is double. Look at any commercial, and it will say "All states, but Alaska and Hawaii." We Alaskan's are the fine print in any marketing scheme, some with merit, but a majority, just because they can charge us more.

 

There are many positive and negative aspects of the tax. The cruise lines bring truck loads of cash to our economy, and is essential for us both. You really think Carnival, or anybody will "Redeploy" out of Alaska? it is a destination, and will remain so, for both the alaska business person, and the cruiselines are making money out of the tourism here. You really think that its wrong to tak a foreign taged vessel in Alaska? Why do you think they are tagged out of Madagascar, or what ever. For tax evasion purposes, simply. We are just doing what ports in other foreign countries are allready doing. Docking fees alone in Grand Caymens are astronomical, and yet, no one balks at what the cruise lines are "Forced" to pay there.

 

There are negative aspects to all the cruise ships in Alaska's pristine waters. Just the other day there was a hump back empaled on the front of a cruise ship. Wheather it died before or after is really moot. We all know that where man is, they will destroy. Illegal sewage will get dumped, joe tourist will throw his popcorn bag on the ground when touring Alaskan cities. I should pay the tax bourdon in my city due to tourists visitation? Yes most Alaskan's still pay huge city taxes, that help support tourism in these same cities.

 

I wouldnt live in the state if I didnt love it, so I am a bit partial on this arguement, but I wanted to voice, from my prospective anyway, how I feel. As I have yet to go on my first cruise, I am booked in January, I have seen prices fluctuate almost daily on my booked itinerary. WOuld you really notice the extra $50 on your bill? I would think not, particularly if it helped in supporting the beautiful state you plan to visit.

[moncrystal]

I thought this was interesting....

 

http://www.adn.com/opinion/compass/story/8081343p-7974251c.html

[ParrotRob]

There are negative aspects to all the cruise ships in Alaska's pristine waters.

 

I don't hear you getting all high and mighty about the oil companies and what they do to your "pristine" waters. Could that have anything to do with the $846 you get from them every year? By the way, would you be talking about THESE pristine waters in Prudhoe Bay:

 

Or were you thinking more about THESE pristine waters in Prince William Sound:

 

??

 

joe tourist will throw his popcorn bag on the ground when touring Alaskan cities.

 

Joe Tourist will throw his popcorn bag on the ground ANYWHERE. Alaska is no different.

 

I should pay the tax bourdon in my city due to tourists visitation?

 

You're d*mned right you should. Especially if you want the tourist dollar.

[Lurkyloo]

When I sail to Alaska, I will pay the $50 extra with pleasure! We have to pay fees everywhere else we go - don't see the big deal!

[phroggie]

Is it Constitutional to tax interstate travel?

 

You might be able to charge a fee for port services or tax services like hotels and car rentals, but a tax on Americans crossing a state line?

[dan40]

I thought this was interesting....

 

http://www.adn.com/opinion/compass/story/8081343p-7974251c.html

 

This Republican Rep. says there are no port taxes in Alaska now. I find that totally impossible to believe. I cannot and will not believe that there is any port worldwide that does not charge every commercial vessel for the use of their port. Alaska must host many dozen cargo vessels for every cruise ship that sails their waters. These cargo vessels do not pay dock fees, pilot fees, etc., etc.?? BULL, every ship pays in Alaska same as they do everywhere else. I'm a Republican and this lying politician is an embarrassment with his own agenda.

 

Dan

[klondikejim]

I never claimed a love for the oil industry mate!. You think due to the permanent fund dividend, that all Alaskans are married to big oil? The Fund is far more dependant on the market than it is in oil, as there are numerous investments tied up in it, to the extent that oil makes little differnce. I was just as appalled as anyone, when I responded to an oil spill for the Motor Vessel Selendang Ayu. You see, I actually was present in the clean up. Your pictures dont do a scene like that justice, believe you me.

 

Your also wrong that most ports dont currently charge docking fees. Cruise lines in the past have threatened to move out of some of the smaller communities if they tried to do something like that. With the statewide tax referendum, all they could do is pull out of Alaska, it actually helps some of the smaller communities that have wanted to place a tax and stayed away from it due to industry pressure and threat of losing the tourism. You read me wrong if you interpreted my statements as anti tourism. I am a tourist for that matter, as I am on a Cruise web site for petes sake. I am just saying, that I am willing to pay to go on a cruise to the Caribbean, and 50 extra dollars to go to Grand Caymen or some place I had never been, is worth it too me, and should be no less expected by someone wanting to visit Alaska. Shoot, I am not a Texas resident, but the last time I was there on business, I had to pay to drive on a freeway leaving the airport. I didnt say, how dare they charge me to fund the road work. I just paid it and got to my destination.

 

We are Americans, (Some of us anyway) and taxing is a way of life. Get used to it, its not going anywhere.

[pat54]

Is it Constitutional to tax interstate travel?

 

Nope, Interstate travel cannot be taxed. However, local ports can impose port taxes. Port Taxes must go exclusively to that port. The $50 tax does not go directly to ports; it goes to a general fund, (and then is distributed). Therefore Measure 2 is unconstitutional.

In addition Measure 2 is attempting to tax income on foreign flagged vessels. That is also a no no. Article 1 Section 8 gives Congress the power to regulate commerce with foreign nations. Our Federal Government has signed treaties regarding this, and The Great State of Alaska cannot usurp those treaties.

[duke052]

don't get hung up on the $50. . It will be much higher. The fastest way to deal with this is for EVERY cruise line to pull out of Alaska. There is a big world out there and Alaska is a very small part.

[klondikejim]

Will never happen. I still dont understand what the hangup is on $50 dollars. My cruise I have for the Caribbean, for 2 people is $2300. Of that fee, $450.00 is for taxes and port charges. You tell me that one of my caribbean destinations isnt charging me at least $50?

[duke052]

read the entire bill that was passed. The cost will be much higher than $50. per passenger. There is a extra corp tax on the cruise line. Who do you think is going to pay for that. Let me help you out. You are. Also they will be a tax on all casino revenue while the ships are in Alaska waters. That is 200 miles from shore. Guess how many times the ship will be 200 miles from the coast. Need help again? Never. Your costs will be much higher than $50.

[dan40]

I agree, the cost will exceed $50.

 

Derf, would you jump in here with your magic link machine and show that EVERY port in Alaska PRESENTLY charges port fees and taxes on ALL commercial vessels [and probably private vessels as well]

 

 

I found one online, if a cruise ship were to dock at Kodiak it would pay $1.10 per linear foot per day [$800. to $1000. per day for most ships.] plus a host of other charges. One was dock workers @ $50. per hour per worker, others were electrical use at $3.+ per kh, and water fees and on and on.

Is the new $50. per pax tax going to replace fees [taxes] like the above? Are you balmy? No the new tax will be on top of the old tax. If the politicians said their were no taxes on cruise ships in the past, THEY LIED.

How do you think ports and their workers get paid. Where else would the money come from.

Why do you think port facilities get built? So the locals can pay ever increasing taxes to keep the port operating? Not likely!!!!!!!!!!!!

ALL MODERN PORT FACILITIES EVERYWHERE, INCLUDING ALASKA, WERE BUILT TO MAKE MONEY. THAT MONEY IS MADE BY CHARGING PORT TAXES AND FEES [same thing].

 

Just as every airport charges landing fees, plus, plus. seaports charge for their use.

Apply a little logic, please.

 

Dan

[Yukon]

In Skagway, the ships pay $8.50 per passenger as the docking fee (ca. $17,000 for the average cruise ship). Some days there are 5 ships in port - not a bad income at all....

 

Murray

[mbisson]

In Skagway, the ships pay $8.50 per passenger as the docking fee (ca. $17,000 for the average cruise ship). Some days there are 5 ships in port - not a bad income at all....

 

Murray

 

Thanks for the info Murray. I have heard (but can't verify) that both Juneau and Ketchikan have a head tax of $7 per passenger. It seems I read that in the Juneau Empire, but it's been long ago and I'm old ;)

 

-Monte

 

Just found this in the online "Alaska Journal of Commerce" May 2003

 

"Juneau charges two fees: a $5-a-person marine passenger fee that goes to tourism, transit and capital-project costs, and a temporary port development fee of $2.18 a head that is used for improvements to downtown public docks. Ships that tie up at the private Franklin Street dock are charged 18 cents per passenger instead of $2.18."

[AKRESIDENT]

I've lived in Juneau for 15 years and am a downtown small business owner. During that time I have watched the number of passengers and the size of the ships explode. In general, most local residents in Juneau and SE Alaska would like nothing more than a reduction in the number of ships and passengers in our town. So, if $50 per cruiser achieves that end, so be it. You need to understand that the quality of the experience is diminished significantly for you the passengers (not to mention those of us that choose to live here) when there are ten thousand plus passengers and another five thousand plus crew dumped in port on a single day. You also need to understand just how little of the money you spend in port actually stays here in the Alaskan economy. Most of the "made in china" trinket shops and the twenty plus jewelry stores that we have in downtown Juneau are either owned by the cruiselines or other non-alaskan businesses. Additionally, many of the employees in these establishments are imported from outside as well. So as soon as the cruise season ends they board up the shops for the winter and the employees and the profits leave for the lower 48. This isn't to say cruising doesn't benefit the local economy, it does, but it does not contribute many of the higher paying jobs and year round employment that our local private businesses and government employment opportunities do. The biggest and only beneficiary from the bloated numbers of tourists is the cruiselines themselves and their corporate owned shoreside businesses. I voted for the tax, not because of the revenue that will be generated and then wasted by our local and state politicos (thats the same everywhere) but because I want a reduction in the number of cruise ships and tourists because it will be beneficial to locals, tourists and the whole Alaskan experience and environment.

Also as a side note regarding educating folks and dispelling some of the misconceptions about our state's oil revenues. Unlike most states, Our state constitution is written in such a way that we, the people of Alaska, own all of our natural resources. Oil, Timber, Gold etc. ect. And our constitution mandates that all of our resources must be managed to the maximum benefit of the people. In the case of oil, which is our largest source of revenue, we have royalties and taxes which are assesed on a per barrel basis. In essence we the people of Alaska sell our oil to BP, Conoco Philips etc. who are then responsible for extracting it. Of those revenues, twenty five percent is allocated to the Alaska Permanent Fund, also a part of our constitution created by amendment in 1976. This fund was created in order to protect a portion of the oil revenue from the insatiable appetite of government to spend every last penny on their precious programs and provide for the day when the oil and its revenue stops flowing. The money that is allocated to the Permananet fund is invested just like any other mutual fund in Stocks, Bonds, Realestate etc. Every year all eligible Alaskan residents receive a dividend check based on a percentage of the 5-year moving average of the net revenue generated by the fund's investment portfolio. Many people have the misconception that this is a governement hand out. Nothing could be further from the truth. This is every current and future Alaska resident's savings account created from the revenue generated by the sale of OUR natural resources. We have some very insightful and far thinking founders of our state to thank for the Permanent Fund. If you would like to learn more about the Permanant fund, go to http://www.apfc.org/

[ARRTrain]

This so called "Tax" will probably go through the courts and get watered down or thrown out.

 

The cruiseships aren't leaving, get use to them in Juneau. Too bad they don't cruise Alaska yeararound and show off some snow, or in Juneau's case mostly rain.