Cruise ship issue resolved in Alaska

Sullivan

ANCHORAGE, Alaska (Legal Newsline) - Alaska Attorney General Dan Sullivan announced on Thursday that a lawsuit against the state's excise tax for passengers on cruise ships has been dismissed.

The Alaska Cruise Association had settled with the state in April with a stipulation that Gov. Sean Parnell agreed to sign a bill passed by the Legislature that would reduce the passenger excise tax to $34.50 from $46 and agree that there would be an offset for passenger taxes paid to local governments, they would dismiss the suit.

On June 24, Parnell signed into law Senate Bill 312, and ACA subsequently dismissed the lawsuit, which permanently resolves the legal issues.

"The issues in this case were factually and legally complicated, and without this settlement this case could have been tied up in federal court for years to come," Sullivan said.

"Beyond that, the tax cut introduced by the governor and enacted by the Legislature should spur economic growth, particularly among small businesses that will benefit from increased tourism traffic."

The new law calls for a three-year review with findings reported to the Legislature dealing with passenger visits, use of tax proceeds and community needs.

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