Alaska Cruise Ship Tax has been Lowered

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In 2006, Alaska had imposed a controversial tax of $46 a person for guests visiting on cruise ships.  As a result, tourism dropped and some of the cruise companies pulled some of their ships out as Alaska became a less profitable place to operate due to the growing taxes and regulation.   The cruise lines found they could make more money elsewhere. The vessels that left this summer are now sailing in Europe, where capacity has grown at Alaska's expense.

 

Alaska Gov. Sean Parnell signed legislation Thursday that will sharply lower the state's tax to $34.5, with additional savings of up to $15 for ships that stop in Juneau and Ketchikan.  Most cruises to Alaska include a stop in Juneau and Ketchikan.

 

Alaska's tax cut comes too late to influence cruise line decisions for 2011.  Schedules for next year are already set. But the legislation could have an impact on the 2012 season in the state.