Cruise lines have taken legal action against Skagway, Alaska for what they claim is overreaching on a new sales tax policy for shore excursions.
Lawmakers in Alaska have recently changed an ordnance to tax the full amount for shore excursions – including the commission cruise lines pocket for marketing the tours.
A lawsuit filed on behalf of cruise lines by Cruise Line International Association claims this violates Alaska and Federal laws.
The suit claims the booking service for these tours are mostly done online and outside Skagway’s jurisdiction so it cannot claim tax on this.
They say this amounts to ‘double taxation.’
Skagway lawmakers passed the amended ordinance last year.
Skagway says this is a fairer tax policy.
Skagway Borough Manager Emily Deach, who is named as a defendant, said: “Skagway made this change to treat tour sales by the cruise lines the same as other sales of products and services within the municipality.”
The CLIA lawsuit wants the commission amount removed from taxation and is claiming compensation for legal costs.
