Alaska Head Tax Reduced by Legislature

[negc]

According to news reports from Alaska news the state legislature has passed a bill lowering the controversial $50 head tax that was charged each cruise passenger:

 

"The bill passed in both bodies is expected to return about $22 million a year to the industry by reducing the head tax by $11.50 for all passengers, and then another $15 for those that visit Juneau or Ketchikan. That would lower the head tax to $19.50 for most passengers, a nearly 60 percent cut.

 

The deal with the cruise industry to reduce the tax is in exchange for the Alaska Cruise Association dropping its lawsuit against the state. Gov. Sean Parnell negotiated the deal, and the bills passed by the House and Senate appear to comply with the terms of the deal."

 

Not sure when the legislation takes effect or how RCI and the other lines will handle this reduction but we should know more shortly. Since we are past the final payment deadline for our cruise I suspect we will be getting an OBC for the difference which I know some of us will invest either in the Schooner Bar or in the casino.:D

[zelker]

There's already a thread going on about this - and hopefully I'm posting the link to it correctly :p

 

http://boards.cruisecritic.com/showthread.php?t=1183832

[cage keeper]

According to news reports from Alaska news the state legislature has passed a bill lowering the controversial $50 head tax that was charged each cruise passenger:

 

"The bill passed in both bodies is expected to return about $22 million a year to the industry by reducing the head tax by $11.50 for all passengers, and then another $15 for those that visit Juneau or Ketchikan. That would lower the head tax to $19.50 for most passengers, a nearly 60 percent cut.

 

The deal with the cruise industry to reduce the tax is in exchange for the Alaska Cruise Association dropping its lawsuit against the state. Gov. Sean Parnell negotiated the deal, and the bills passed by the House and Senate appear to comply with the terms of the deal."

 

Not sure when the legislation takes effect or how RCI and the other lines will handle this reduction but we should know more shortly. Since we are past the final payment deadline for our cruise I suspect we will be getting an OBC for the difference which I know some of us will invest either in the Schooner Bar or in the casino.:D

 

It would be the bar. :D

[negc]

There's already a thread going on about this - and hopefully I'm posting the link to it correctly :p

 

http://boards.cruisecritic.com/showthread.php?t=1183832

 

Thanks but that thread is on the HAL board which may not be read by those who will be cruising Alaska with other lines. I thought the topic would be of general interest to all who read or contribute to the Alaska board, hence my post.

 

It will be interesting to see if the cruiselines respond by bringing more ships back to Alaska, but it probably won't happen until 2012 since 2011 itineraries have already been released by some, if not all, of the lines. :)

[milford_cruiser]

That would lower the head tax to $19.50 for most passengers, a nearly 60 percent cut.

 

I suspect we will be getting an OBC for the difference which I know some of us will invest either in the Schooner Bar or in the casino.:D

 

It would be the bar. :D

 

Yup - better return on investment...

[socalhal]

"The bill passed in both bodies is expected to return about $22 million a year to the industry"

 

I don't get this statement. It should be returning $22 million to the passengers. Whether they return it to the industry is up to them.

[nimrod1940]

Yup! The bar is by far the best use that that money. Thanks for the post. See you all in July.:):):)

[negc]

"The bill passed in both bodies is expected to return about $22 million a year to the industry"

 

I don't get this statement. It should be returning $22 million to the passengers. Whether they return it to the industry is up to them.

 

The state received the tax revenues from the cruiselines which added the charge to passengers' bills. The revenues were based on the total number (not identities) of passengers on each cruise The state will refund the money to the ship lines and they, in turn, wil have to refund the payments to their passengers. The state doesn't have the information necessary to make individual payments to each and every passenger and the cost of such a process would probably be prohibitive.:rolleyes: Since the amount that is being refunded is public record, any attempt by a cruiseline to divert any of the returned funds from the passengers who paid the fee would be disastrous to any line that tried to do so. Not to worry, we who were charged, will see the refunds in one form or another.

[Billabongi]

Is there a certain cut off date on this? I have a May 15th cruise and curious if Ill see this?

[zelker]

haven't seen anything about effective date yet

[buddy&bella]

i checked and i think they figured it to be $53.00 refund for 2 people. but then we are going to juneau and ketichikan. judyp

[rjm11]

haven't seen anything about effective date yet

 

This was posted on the NCL board:

 

This just reported from Alaska:

 

Alaska Legislature Approves Bill to Lower Cruise Head Tax

(8 p.m. EDT) -- Just three days before it's scheduled to adjourn for the year, the Alaska state legislature

Thursday approved a bill that will lower the controversial head tax charged to cruise passengers from

$46 to $19.50 per person, effective immediately.

 

 

I don't know the source, but according to this quote, it is effective immediately.

[JJ2sail]

Thanks for posting this! Good news!

[cage keeper]

Do I see an onboard credit coming my way?:D

[negc]

Since the Alaska cruise season opens up in May, we should be learning more details shortly. I'm wondering what the reaction is from those who were pushing for the tax in the first place and whether or not they will accept the legislature's action or will take any legal actions to reverse this latest decision. Perhaps some of our Alaskan posters can describe the public reaction to this move.

[Texas2804]

Form the CC news article 4/16/10

 

"A representative from Princess Cruises tells us that, once the bill is signed by the governor, it won't go into effect until the end of October this year -- meaning none of the passengers booked on this year's itineraries will be affected by the change. However, beginning with the 2011 Alaska season, the line hopes to avoid charging the additional $7, $8 or $15 to passengers in the first place. Royal Caribbean echoed those sentiments, and Holland America was unable to offer additional information at this time but promises to get back to us soon. "

 

It would have been over $100 for us since we have 4 in our stateroom:confused:

[Putterdude]

Do I see an onboard credit coming my way?:D

 

Yes, it will just about cover and bottle of wine at dinner and the gratuity...but then again never look a gift horse in the mouth.:D

[rjm11]

Form the CC news article 4/16/10

 

"A representative from Princess Cruises tells us that, once the bill is signed by the governor, it won't go into effect until the end of October this year -- meaning none of the passengers booked on this year's itineraries will be affected by the change. However, beginning with the 2011 Alaska season, the line hopes to avoid charging the additional $7, $8 or $15 to passengers in the first place. Royal Caribbean echoed those sentiments, and Holland America was unable to offer additional information at this time but promises to get back to us soon. "

 

It would have been over $100 for us since we have 4 in our stateroom:confused:

 

But I think the articles being quoted are more recent than this post. From what I'm reading on the NCL board, this info is outdated... they are claiming that several sources have said it IS going to affect the 2010 passengers.

[Adri204]

Since the Alaska cruise season opens up in May, we should be learning more details shortly. I'm wondering what the reaction is from those who were pushing for the tax in the first place and whether or not they will accept the legislature's action or will take any legal actions to reverse this latest decision. Perhaps some of our Alaskan posters can describe the public reaction to this move.

 

 

Alaskan early riser reporting for commentary. I know for me personally im glad that the tax was lowered. Im pleased that the AK Legislature did this. I personally wrote and made some phone calls about it to my Legislature. Ive been talking to friends and family about this and over all ive heard positive.

 

After all realisticly and bluntly speaking a great many Alaskans benefit directly and indirectly from tourists cruising in Alaska.

 

That being said Im pleased as punch that more people can see how special this state truly is. I admit as a born and raised Alaskan Im extremly biased (Just a little mind you lol) about my beatiful, gourgous and precious State :)

 

Adri

[negc]

But I think the articles being quoted are more recent than this post. From what I'm reading on the NCL board, this info is outdated... they are claiming that several sources have said it IS going to affect the 2010 passengers.

 

In Massachusetts, there is frequently a waiting period after the governor signs newly enacted legislation before it takes effect. However in certain instances either the legislature or the governor can declare that it is emergency legislation and the law will go into effect immediately. Not sure if Alaska laws are similar but from the reports that the law is effective immediately, I would think so. I wouldn't rely on comments from cruiseline spokespeople who may not be familiar with all the details of the legislation and would wait for the legal department's review and analysis of the situation before concluding that the spokesperson's comments are grounded in fact. I'm not spending the refund before I receive it but I remain hopeful that it will be given.:)

[CruisingGoddess]

This is great news! Please keep us posted if anyone hears something from the cruise lines. (I'm particularly interested in Princess.)