Alaska Shipping Tax, Ballot Measure 2 (August 2006)
A group called Responsible Cruising in Alaska supports Measure 2.
In 2009, an executive from Carnival Cruises said that the company is thinking about suing the State of Alaska over Measure 2. Carnival Cruises and others believe that the head tax imposed via Measure 2 is driving cruise ships out of Alaska and into waters that are more profitable because the cruiselines don't have to pay the extra tax.
Cruise West, Princess, Royal Caribbean and Holland America have said that for the 2010 cruise season, they are redeploying ships from Alaska. 1,800 tourism-related jobs based in Alaska will be lost if this happens.
Patti Mackey, executive director of the Ketchikan Visitors Bureau, believes the Measure 2 tax is hurting their economy. "I think Alaska has become a more difficult place for the cruise lines to do business. The tax and all of the associated regulations that were part of the ballot initiative are all part that equation, and certainly the economy right now isn't helping."
Chip Thoma, president of Responsible Cruising in Alaska, and Joe Geldhof, a driving force behind Question 2, believe that Measure 2 is a net benefit to the state.
Ralph Samuels, vice president of government and community relations for Holland America stated that costs for Measure 2 "exacerbate" declining revenues that should be repealed. At a presentation given at Juneau Chamber of Commerce luncheon, Samuels said that declining revenue margins will result in cruise lines pulling their ships out of the state. Juneau Lawyer Joe Geldhof, author of the ballot measure, stated that Samuels was using "Chicken Little politics" by stating such ideas.
Gedhof elaborates: "People run around saying, 'The sky is falling, the sky is falling,' and after the chamber lunch, people say, 'The sky is falling we have to get something done'. Ralph is trying to create hysteria, to stampede legislators over the cliff and repeal the head tax."
Text of the proposal
The text of the proposal was as follows:
This initiative would impose a $46 per person per voyage tax on large cruise ships to pay for vessel services. It would provide for the proceeds from the tax to be deposited in the state general fund and, subject to appropriation by the legislature, distributed to municipalities. It would levy a tax on cruise ship gambling activities in state waters. It would change the way cruise ship corporate income tax is calculated. It would require cruise ship operators to gather and report more information, and get a new type of permit for sewage, graywater or other wastewater before discharging in state marine waters. It would assess a $4 per passenger berth fee and require large cruise ships to have state-employed marine engineers (Ocean Rangers) licensed by the Coast Guard to observe health, safety and wastewater treatment and discharge operations. It would authorize citizen lawsuits against an owner or operator of a large cruise ship, or against the Department of Environmental Conservation, for an alleged violation of any permit condition, provision of environmental statutes or performance of duties. It would also enable a person who provides information leading to enforcement of the law to receive 25 to 50 percent of fines imposed. It would impose additional requirements on disclosures about on-ship promotions of shore-side businesses.
The group in favor of the shipping tax was called "Responsible Cruising in Alaska". They raised and spent just $8,497.
The group opposed to the shipping tax was called "Alaskans Protecting our Economy". They raised and spent $1,357,924, with the largest single donation of $1,344,244 coming from the Northwest Cruiseship Association.
- Christian Science Monitor, "Alaska to Cruise Ships: We're Not Your Sewer"
- Alaska 2006 election results
- KTUU, "A taxing situation for cruise industry", July 16, 2009
- Juneau Empire, "Cruise executive blames head tax for revenue drop", July 31, 2009
- Follow the Money campaign finance reporting for the Alaska shipping tax ballot measure