Alaska Cruise Association lawsuit terminated

Attorney General Dan Sullivan announced last Thursday that the Alaska Cruise Association (ACA) has officially terminated its lawsuit against the state's excise tax on cruise ship passengers.

A stipulation filed with the U.S. District Court for Alaska dismisses with prejudice the lawsuit that was filed against the state last September. In a settlement agreement reached between the state and ACA in April, ACA agreed to dismiss its lawsuit if the governor signed into law a bill passed by the Legislature that reduced the commercial passenger excise tax from $46 per passenger to $34.50 and also provided an offset for passenger taxes paid to local governments.

On June 24, Governor Parnell signed into law Senate Bill 312, passed by the Legislature in April, that contained the elements necessary to trigger dismissal of ACA's lawsuit. The stipulation filed today permanently resolves the legal issues.

Source: State of Alaska Department of Law press release of July 1, 2010

Alaska: cut in cruise tax ratified

The Alaska State Legislature passed a bill that will reduce the state’s cruise passenger head tax from $46 to $34.50, and end a lawsuit the industry filed to overturn the tax. The Alaska Cruise Association signed an agreement last week with the Alaska attorney general to drop the lawsuit if the state passed the measure to reduce the tax.

Source: Travel Weekly; find article here>>.

Alaska: Cruise Association files law suit over passenger head tax

The Alaska Cruise Association filed a federal lawsuit challenging Alaska's head tax on the approximately 1 million cruise-ship passengers who arrive in the state each year. The lawsuit is seeking relief from the $50 fee imposed on each passenger arriving aboard large cruise ships, a fee which was approved by Alaska voters in 2006.

The association argues that the head tax by far exceeds the expenses of services and facilities provided to cruise ships, and in some cases the money is going to fund projects that do not directly benefit cruise-ship passengers.

Source: The Seattle Times; find article here>>.