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Juneau urges dismissal of CLIA cruise tax lawsuit
Monday, 17 Jun, 2016
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The City of Juneau, Alaska is claiming the U.S. District Court has no jurisdiction to hear a lawsuit brought against it by the cruise industry, and is seeking a dismissal.
Cruise Lines International Association Alaska, on behalf of several cruise lines, is suing Juneau for misusing passenger tax revenues.
CLIA claims the city used funds from the $8 per cruise passenger fee for other non-cruise industry projects which it claims violates the U.S. Constitution.
In the lawsuit it requested a permanent injunction to the fees.
CLIA said the city misspent more than $41 million on other projects over a 15-year period.
In a written motion to dismiss, the city’s attorney Robert Blasco quoted the 1948 federal Tax Injunction Act, which stops federal district courts from halting state tax collections when a case can be heard in state court.
"The Tax Injunction Act strips the federal courts of jurisdiction to enjoin or restrain the levy, collection, or assessment of state taxes, including local taxes authorized by state law, where plaintiffs can obtain adequate remedy in state court," Blasco wrote.
Juneau’s dismissal motion centered almost entirely on the jurisdiction issue and did not address the issue of tax revenue misuse as alleged by CLIA.
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