USA Today
Word from Alaska is an agreement has been signed for cruise lines to back off on their federal lawsuit over a controversial passenger head tax. But all hinges on the state legislature agreeing to lower the charge to cruise lines for doing business in the state.
The deal, signed Sunday by the Alaska Attorney General and Alaska Cruises Association President John Binkley, says the suit will be dropped if a reduction in the head tax is signed into law this year.
Alaska Governor Sean Parnell has recommended lowering the fee paid by the lines from $46 to $34.50 per cruise passenger, as well as deeper offsets for local taxes in Juneau and Ketchikan. The agreement reached Sunday, reportedly allows, though, for other bills to also be considered.
The Alaska Cruise Association has blamed the head tax for a cut in ships this year, for a total estimated loss of 142,000 passengers.
The deal, signed Sunday by the Alaska Attorney General and Alaska Cruises Association President John Binkley, says the suit will be dropped if a reduction in the head tax is signed into law this year.
Alaska Governor Sean Parnell has recommended lowering the fee paid by the lines from $46 to $34.50 per cruise passenger, as well as deeper offsets for local taxes in Juneau and Ketchikan. The agreement reached Sunday, reportedly allows, though, for other bills to also be considered.
The Alaska Cruise Association has blamed the head tax for a cut in ships this year, for a total estimated loss of 142,000 passengers.
Reportedly, another term of the agreement is that the cruise lines would agree to help market the state as an "attractive" destination and increase cruises departing from Anchorage and other major cities.
The lawsuit would proceed if the changes in the tax are not made. Alaska voters approved the controversial head tax in 2006.
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