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CLIA files legal challenge for misuse of cruise taxes
Monday, 15 Apr, 2016
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CLIA has filed a lawsuit against the Alaskan city of Juneau, claiming it has misused money it collects from cruise ship visits.
CLIA and its Alaskan affiliate say Juneau has been using part of the money it receives to fund projects that are not related to the local cruise industry which violates federal rules.
The city charges a $5 entry fee and a $3 port development fee for every cruise passenger and CLIA says it has received $35 million in entry fees from cruise lines in the past four years.
The lawsuit alleges Juneau funnelled money including $10 million for construction of a 50-feet whale sculpture, renovation of the city’s waterfront more than a mile from the cruise port, and upgrades to a private marina that cruise ships and cruise passengers do not have access to.
"The constitution allows you to charge a fee, but it has to be used in conjunction with that vessel. You can’t take the money and use it for city operations," said CLIA Alaska president John Binkley.
Juneau City manager Kim Kiefer, who is named in the lawsuit, said the city is surprised by the legal challenge and believes it has done nothing illegal.
"We have a long history of using these fees in what we believe are legal, responsible ways to be used to manage our tourism industry,"
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