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Old February 14th, 2002, 09:38 PM
HannaS77
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Default $30 Proposed Tax On Alaska Passengers

Since the posting under Alaska, there has been more information on the subject.

Alaska Governor is asking the state legislature to resurrect the proposed $30 per cruise ship passenger tax. This proposed tax has be kicked around for two years but never enacted. The Governor says the tax income is need to supplement the state budget. If the tax is not enacted he wants legislation to tax the corporate income of the cruise lines. Since most of such income would come from foreign flagged cruise ship, there probably will be lawsuits by the cruise lines.

Under section 883 of the Internal Revue Act, foreign flagged cruise lines are exempt from corporate income tax if the flag nation grants similar exemption to U.S. carriers and the cruise line is at least 50% owned by foreigners. Section 883 is as the result of treaties between the United States and the respective flag nations. It is questionable if a state can abrogate a treaty.
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