Passengers to Alaska may soon face an extra $50 tax.

[Traveler88]

Sure...and that is why the train depot is at the Anchorage Airport for the direct run to Seward and the boarding for southbound cruises....and for those folks getting off the northbound ships in Seward who won't have to drop a few dollars in Anchorage on their way out either...right? Princess does have Gift Shops that specialize in souvenirs for each stop on board ship before and after each stop...this alone would discourage most people from buying ashore and lugging the items during the stopover. Most Alaskans will benefit by having the cruise industry pay it's own way directly as do most other honest endeavours. The future will only have this business growing larger and money (2 Million Dollars) from outside Alaska almost was enough to control this election...better to nip this now while it is manageble than let it get totally out of hand

[Zyzygy]

If I understand the CC news story correctly, the killer wouldn't just be the $50 pp head tax, but also the new levies on cruise ship income.

 

If cruise lines have to pay more income taxes to the State of Alaska, guess where they are going to make it up: from the passengers.

 

Alaska already leads the U.S. in per capita net inflow of federal tax money. In other words, Alaskans already receive the most net federal tax expenditures per person, as compared with their tax payments, of any state in the Union.

 

Some of this is due to the largesse of Sen. Ted Stevens, chair of the Senate Appropriations Committee. Who could forget his $400 million bridge to nowhere (an island populated by a few hundred people), when it would have been cheaper to provide a speedboat for every man, woman, and child living on the island than build the bridge?

 

Much of the other tax largesse is due to Alaska's staggeringly large oil royalties, collected from the North Slope Oil fields.

 

Alaska is also populated by numerous military bases and receives huge amounts of federal money in their staffing and upkeep.

 

It is one of the few states that is so well off financially that it needs no state income tax. Additionally, Alaska has amassed a huge surplus trust fund of oil royalty income to be doled out to future generations. Currently, every man, woman, and child in Alaska already receives a large annual cash payment of oil royalty income, in addition to the vast trust fund that has been built up.

 

To tax cruise passengers under these circumstances is obscene.

 

Instead of the image of rugged frontier folk battling the elements, it would be much more accurate to regard Alaska as a welfare state sucking on the milk of the federal government.

[ARRTrain]

The only ones going to and from the Airport Depot and ships are the passengers that want to do Cruise Only. The Cruise Tour people who spend time in the state before and after the cruise are the passengers who spend money in the state and that is about 70% of the passengers on the ships.

 

No other state in the nation has a head tax for you to come and visit. Alaska doesn't need one either for its cruise passengers. What is next taxing all the RVs driving the Alcan Highway, 'cuz they come up here and tear up the roads and leave their sewage hoses on the side of the road? At least all the Tour Buses up here are registered in the state and pay the state in Tag fees.

[Zyzygy]

Cruise lines already pay for the construction and upkeep of piers and docking facilities through docking fees. Typically these fees are also profit centers for the ports involved, as most ports (except those desperate for business) charge more than enough in fees to pay off their construction costs.

 

It is much the same as airlines paying landing fees to land at airports.

 

Also, in terms of tourists spending money into the local economy, look to the internet booking sites for "Alaska Cruise Tours". A majority of Alaska cruise passengers also book multi-day land tours to go to Denali, Talkeetna, Fairbanks, etc.

 

Alaska's claim of poverty is just a lot of self-serving hooey.

[denali1]

Everyone needs to read the whole measure that was voted on. It is not only about a $50 tax per passenger.

The other areas are a higher corp tax on the cruise line. Who do you think will be paying for that. Also includes a portion of the ships casino revenue.

This bill should of never of been approved by state. Every cruise line should pull out of Alaska till they wake up.

 

I have a little more info to pass on from here in Alaska.

Today I was told that the cruise port towns voted overwhelmingly against the measure. As I suspected, it was voters living in outlying areas that voted yes.

Also, just a note on how the tax money will be spent. My understanding is that Alaska'a constitution prohibits any tax from going into any fund but the "General" fund. This is another reason why the measure was a bad idea.The whole concept that the money could be used to pay for infrastucture in the ports, was really just smoke and mirrors by the measures sponsors.

 

By the way, there had been attempts by some of our liberal lawmakers to get this measure thru our legislature. It failed miserably. Our politicians would not support it. So....the outside interests and enviromentalists went to work. They spent some time gathering petition signatures. When they had enough signatures it was put on our ballot.

 

For the poster who asked about the $4 tax to support the environmental watchdogs on the ships: It is our understanding that is for two people per ship. Covers salaries, cruise fare, etc.

 

Lastly, and perhaps most importantly: We are hearing the cruise lines will most likely file suit. If so, look for a lot of lawyers to get rich. And consider the possibility that they could get a temporary order to delay the imposition of the taxes. Lets hope so.

[pat54]

Denali1,

The Measure 2 is unconstitutional, the US State department will file suite. The Federal Judge in Juneau will throw it out. This whole conversation is a moot point.

However, in one of your posts on this subject you stated that your tourism taxes were low compared to the lower 48. I just returned last night from Anchorage. My hotel tax was 12%, and my car rental tax was 33%! In addition, I realize that while I am in Anchorage I do not have to pay sales tax, just like when you are in Seattle, you can show your Alaska drivers license and avoid Washington State Sales Tax. I wish I could be sales tax exempt in Kenai, or Juneau by simply showing my Washington drivers license.

Lastly, Juneau better not support tourism taxes, after your new Governor Sarah moves the capitol buildings to the Valley, the folks in Juneau will have nothing but tourism.

[yoeddy1]

I voted yes on this and here are a couple of reasons why ... While living in Seward in the early 80's when a cruise ship docked , the town and ALL the businesses were overrun and prospered because of them . Now you can't tell the difference when they are in town becase the cruise industry has ALL of their plans set for them. I.E. businesses that pay for it ...to profit the cruise ships more ...hmmmm I smell monopoly here!!!

 

The Mom and pop stores in Ak don't see a dime!!!

 

When i travel i get charged taxes for rental cars, sales tax, user fees..

It is about time Alaska did the same!!!

 

I am a lifelong alaskan and am sick and tired of having my short summer ruined by a bunch of tourists... taking my fishing spots.. clogging the roads .. Other seasonal taxes for tourists should follow.

 

Alaska has had it with being bullied by special interest groups and it showed in the last election !!

 

The majority of the major cruise lines operating in Alaska are owned by ...

 

British petroleum ...

 

This same company is under congressional investigation for criminal behavior in maintaining the Trans alaska pipeline. Thank them for $3.00 +a gallon gas.

 

A significant portion of this tax is to MONITOR the cruise industry in our precious waterways by a coast guard licensed obsever, not to add to our states wealth.

 

They are not to be trusted .. Regulate the heck outta them!!!

[yoeddy1]

the capital should and hopefully will move ... access by the people not just special intersts and lobbyists .... Go Sarah!!!

[ARRTrain]

Oh, come on. Show us the proof that BP owns the cruise companies. 33% of the profits from the Casino? That doesn't go to the Coast Guard.

[kennicott]

No other state in the nation has a head tax for you to come and visit. Alaska doesn't need one either for its cruise passengers. What is next taxing all the RVs driving the Alcan Highway, 'cuz they come up here and tear up the roads and leave their sewage hoses on the side of the road?

 

Come on, get real. These other forms of transportation are taxed! Through federal matching fund programs, which Alaska gets its share.

 

Passengers on aircraft are taxed. Started back in the very early 70s. The airport development aid program. Congress didn't want the public to know they were coming up with a tax so the airlines are required to bury the tax in the ticket price. On airline tickets the tax is something like 6% or 8%. In addition, when traveling to a state like Alaska or Hawaii, where you leave the conterminous states in an aircraft, there is a gateway tax incorporated into the ticket as well. For non-scheduled aircraft, with gross weights over 6000 pounds there is also a tax on those charter revenues. These funds are all administered by the FAA and returned to the states. They are placed into a trust fund and dispersed to airports within the US under the terms of a complicated matching grant program. So the traveling public within Alaska receives benefit from these taxes through airport improvements.

 

RVs coming into Alaska are also paying, through the nose, for use of the road system in Alaska. Courtesy of the Federal Aid Highway Program, which pours 30 billion into the US highway system. Each state gets a chunk. These funds come from fuel and motor vehicle excise taxes.

 

Shortly after statehood the ferry system in Alaska was included within the Federal Highway Program. So all US highway system users in the US help support capital improvements to our ferry system. Get it? In other words, the travelers on the “Blue Canoes” are being taxed since they are users of the nation’s highways. The boats are paid for through user taxes. “The Alaska Marine Highway System” itself is a big operational loss each year for the state.

 

Only fair that the cruise industry gets in line. They are not being picked on. As far as the comments regarding the greedy Alaskan. Well, I guess the guy who says he wants to cruise more than he wants to enjoy the scenic beauty of Alaska has probably got it right. He should cruise only on these big megaships and sail in circles in the ocean somewhere, playing and gambling and staying away from world ports and coastal waters. Probably and preferably off the coast of Mexico or in the Caribbean. Which, by the way we have visited many and have paid many a fee without bitching. In other words, these ships are ocean-based resorts in competition with land-based, heavily taxed, resorts. Personally, under those circumstances, I prefer the land resorts.

 

As far as my vote: I was surprised the cruise ship tax passed since almost two million dollars worth of advertising opposing it has inundated us for weeks. I was really in a quandary which way to vote on that one. I have historically been opposed to head taxes like that and have objected whenever it was suggested here in Alaska. However, almost three quarters of the cruise passengers are round robin southeast visitors who get on in Seattle or Vancouver and return. Only about one forth come on up here to central Alaska and then most of them either catch the first plane out or if cruising south go from the airport directly to the boat. It is the large families and people coming up to central Alaska that may take further ground excursions later that I feel the tax may hurt. I don’t tear up at all over the gambling on the ships getting taxed; any shore based gambling is taxed heavily up here anyway.

 

Communities in southeast are now maxed out with tourists. And the cruise industry announced that they are not going to try to open up any other ports or use smaller ships. So it is probably about time restrictions were placed upon the number going into those small communities. Supply and demand. After all, a town of 7000 people absorbing 30,000 passengers off ships in one day is a little ridiculous.

 

But I made up my mind after reading all the posts cussing us out over being so greedy and ripping off the oil companies and so on. So, I decided to vote YES. Furthermore, contrary to opinions on this board, this wasn’t just a hard-core greenie initiative, many Alaskan’s feel this way and have for some time, if there was a larger voter turnout the margin in favor probably would have been much greater. In fact, I understand a move is afoot to up the anti even more.

[pallan]

If this measure passes....why doesn't Alaska place a sign on it shores saying " You're not welcomed here"?

[yoeddy1]

Oh, come on. Show us the proof that BP owns the cruise companies. 33% of the profits from the Casino? That doesn't go to the Coast Guard.

 

google it, not that hard .. 50.00 head tax for the coast guard ...33% just the cost of doing business...

[vozzie]

 

The Mom and pop stores in Ak don't see a dime!!!

 

 

And do you see these taxes, going into consolidated revenue, coming back to the mom and pops of AK?

 

My wife and I had planned on flying out from Australia for a cruise and land tour of Alaska in 2007. Now I'm not so sure that I want to pay an extra $100 for the privilege of spending $20,000 in your country.... plus airfares to get there.

[yoeddy1]

read prop 2 fully on the state web site ... it is not to make money for the state .. it is to help pay for a coast guard observer to protcet our pristne waters.. help with our infrastructure and to rightfully charge people for our

services and tax businesses appropriately .. I would only expect to pay these fees if i were to visit your country ... I will look into your fees ... and I dont think I'm that far off base ..$50.00 when it costs $20,000 for your vaca ....hmm

[spongerob]

Yoeddy, it doesn't matter what people pay versus the tax rate. It's like saying it's okay to take a TV from your house because you have three more. $50 per person to place an "observer" on board each cruise. That's $100K per cruise...wait a minute, where do I apply?

 

I think these kinds of fees are out of control...everywhere.

[kingfish78734]

I don't know if anyone has mentioned this yet, as I haven't read all the posts, but...If you figure the average ship is carrying 2000 passengers times $50 a head, then the state of Alaska will be raping $100,000 per ship per trip.

I now publicly proclaim that I WILL NEVER CRUISE TO ALASKA. UP YOURS ALASKA!!

[klondikejim]

Coast Guard is federally funded. No reason that Alaska would pay for an observer. Coast Guard certified is another matter. That would be a civilian entity, approved by the Coast Guard (I want that job) to observe. I dont think that is totally unexceptable by the way. The cruise lines have been known to dump at sea. Grey water (shower and sink returns) can build up in huge amounts on a ship, as you can imagine. On a cruise, its even more. If a cruise ship is underway, and they have full greywater tanks, do you think a cruise line wants to say, Hey, sorry folks, we got to pull into another port to dump sewage! Heck no, they think, its just grey water, lets dump. IT happens, or has happened, as ships have been found out. That is just the ones that have been caught. Tons of soap dumped into the inside passage isnt my idea of stewardship. A rider onboard to assure compliance is not something totally unexceptable. A tax isnt unexceptable for that matter either. As I said on another thread on this matter, I paid 2300 for a Caribbean cruise for 2 people. Of that fee, $450 is taxes and port charges. I guarantee you that there are port charges higher than $50.00 right now for my caribbean destinations. I am not threatening to take my business elsewhere due to that charge. Why should Alaska be any different. Its mentioned what free loaders alaska is, and how we get all this federal money, etc... Try living here for a week even. Check out the prices, not of your furs and jewelry, but a gallon of milk. Heck, my gas is $3.50 agallon right now, but has been near 3 dollars for over 8 years, (WHen I lived in Cordova I paid 2.88 a gallon). I live here by choice because I love the state, I love the schools for my children, and I am willing to pay the price to live here. I know there are many below poverty level residets of the state trying to make a living here. Our state does a pretty good job of helping those people, and I am proud of that fact. You speak as if Alaska is another country, and not your fellow Americans. All states tax. Some use Toll roads, San Francisco taxes its bridge (Built by the feds btw) Taxing is how states stay afloat. That the crusie lines got away this long without being taxed is what should be surprising.

[sea_u_onboard]

As I said on another thread on this matter, I paid 2300 for a Caribbean cruise for 2 people. Of that fee, $450 is taxes and port charges. I guarantee you that there are port charges higher than $50.00 right now for my caribbean destinations.

I'm not disputing your figures (what you paid) but I just went out and looked up our Alaska cruise for next year and then I looked up a Western Caribbean cruise for the same week. The total fees (for 4 people) on the caribbean cruise showed to be $60.00 less than the Alaskan cruise. So by adding an additional $200 to that cost makes the taxes / fees for our Alaska cruise $260 more than the Caribbean.

[pierces]

The coalition came out with the "whistle blower" idea that if anyone saw this happening and could prove it - mostly by photographs - that person would share in the fine imposed.

 

It didn't take the cruise lines long to realize that everybody was now watching and they eventually fell in line.

 

So yeah, if they do it and get caught, fines apply.... If they don't pay the fines, then they will get sued.

 

If the government is so very, very concerned about the environment, why are the waters being over-fished to sterility?

 

Dollar$

 

The taxes, fines and "whistle-blower" rewards provide govenments and people with what?

 

Dollar$

 

If people who care about the environment refuse to sail on a ship owned by a company thats disregards dumping laws, that company loses what?

 

Dollar$

(I wish this was the way the world worked!)

 

It's all about the money involved. The cruise lines dumped because they saved the huge treatment fee at the ports, not because they hate the planet and want to hurt it. Why did New York ship their garbage offshore and dump it for 100 years while "everybody was watching"? Because it was cheaper than hauling it into the hills and burying it.

 

I am not against fines or penalties for violating the regulations and honestly, because the cruise lines are businesses, I suspect that they will only comply 100% when the fines are more expensive than the fees. I would prefer a situation where people do what's right without a government or lawyer beating them about the head and shoulders with litigation. Do I believe that it will happen that way...sadly, no.

 

So let's all be outraged at the big corporations, spank them when they're bad and tax them when they're good. Then we can be outraged when they raise prices to cover those costs or outraged when they abandon a market because it's not profitable anymore. Outrage is a way of life for some people and makes good press when it rails against the "evil rich". I just hope the outrage is there when some entrepraneurial "whistle-blower" is caught following a cruise ship with a boat-load of garbage and a camera! Maybe some actress will climb up in a tree to protest it!

 

As for myself, I'm going to put what little outrage I have left on the shelf for later and go on a cruise.

 

Dave

[Chat Noir]

It is the large families and people coming up to central Alaska that may take further ground excursions later that I feel the tax may hurt.

 

You hit the nail on the head exactly for my family. We've enjoyed our time in Alaska pre/post cruising totally independent of the cruiselines. $50pp...if it's necessary to upkeep a beautiful state, fine, but it's the additional fees/taxes I fear will put Alaska out of our price range.

Taxes are a part of life... taxed when earned, taxed when spent... but it all plays into what I pay for something. Sometimes, without the tax, it's worth it, with the tax, it becomes just a little out of my range, and I must pass.

We've thoroughly enjoyed visiting places we'd not have seen without the benefit of cruiseship transportation. Juneau, Ketchikan, Skagway (and Carcross, YT) and Sitka are all nearly impossible for a family of 4 to visit independently on a budget.

We've also enjoyed touring interior. Cruising, then touring independent gives the best of both worlds. We've enjoyed Seward to Denali, and east to Palmer independently touring by RV/car-rental/Alaskan Railroad. Within the next couple of years, I'd hoped to RV or car-rent and lodge Seward to Valdez pre or post cruise. We'll see how the fares look when the time comes... I was planning to book soon for next year, but I'm not so sure now...

I wasn't lucky enough to be born there, or even to be able to move there, but I do consider myself blessed to have had the opportunity to visit twice. If budgetary constraints prevent us from visiting Alaska again, we'll head back to our beloved Rockies for our vacations, and pick up an exotic cruise elsewhere now and then. And continue to enjoy our memories and fabulous photographs of the beautiful state of Alaska.

[tired]

This is really great, and to think there some of us who actually thought Alaska wanted our tourist dollars and not our blood.
I have a better tax proposal, Tax everyone who is a resident of Alaska $100.00 each and every time they exit the state via any form of transportation and $50.00 every time they enter the state.
Then stop MY federal dollars from assisting Alaska because with the revenue they receive from exiting Alaskans, they won't need it.:D
So There, Tired

There are many other places to visit where you won't feel like their extra money pot.

[mbisson]

[quote name='denali1']I have a little more info to pass on from here in Alaska.
Today I was told that the cruise port towns voted overwhelmingly against the measure. As I suspected, it was voters living in outlying areas that voted yes.
Also, just a note on how the tax money will be spent. My understanding is that Alaska'a constitution prohibits any tax from going into any fund but the "General" fund. .[/QUOTE]

Hello denali
I had been hoping to see some kind of breakdown on where the votes came from so thank you for that. If you are correct on how the money would go to the general fund and not be distributed as written in the measure, I see the possible grounds for lawyers to have to vote thrown out. I'm not expecially in favor of invalidating elections, but it sure happens a lot in our state (Washington) :(

-Monte

[Topgun1]

[quote name='johninwpa']Maybe the other 49 states can decide to sell it back to Russia. It,s not the 50 per person, its the principle. Greed, greed, and more greed.[/quote]

WOW! The guy above just stole my thunder! :mad: DARN! I wanted to say that! The one word that hits the nail on the head above is "PRINCIPAL".........Just wait until the rest of the States & ports start doing this. Miami, New York, San Juan, Galvaston, Tampa, San Diego, Hmmmm.............Key West is kind of purteeee.............Ka-ching---Ka-ching..........Hey.....what about Hawaii, Ka-ching---Ka-ching, Now lets see......Tahati, Bora Bora, Little Rock.........:eek: ...........

OK, maybe not Little Rock..........but you all get the point...Tsk tsk tsk

To all of the Alaskan's that vote in favor of this bill.....SHAME SHAME SHAME on you............

[mbisson]

[quote name='yoeddy1']it costs $20,000 for your vaca ....hmm[/QUOTE]

Where did you get the idea I CAN AFFORD a $20,000 vacation? And even if I could, does that mean I should spend $20,050 instead? (plus whatever the other items in the bill end up adding to the price of a cruise)

-Monte

[sea_u_onboard]

[quote name='mbisson']Where did you get the idea I CAN AFFORD a $20,000 vacation? [/quote]That comment was directed at vozzie.