Tax on cruise ship passengers nears approval

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ANCHORAGE, Alaska -- With the vote count nearly concluded, Alaska voters appeared to be ignoring a $2 million advertising campaign and approving a $50 per head tax on cruise ship passengers who throng the state's southeast coast each summer.

The measure also would tax the ships' gambling proceeds, require cruise lines to pay corporate income taxes and require they get state pollution discharge permits for ship wastewater.

With 87 percent of precincts reporting by Wednesday, yes votes on the ballot measure led by 6,150 votes, 52 percent to 48 percent. Problems with Alaska's new touchscreen voting machines forced hand counts in some areas and delayed a final tally.

Sponsors of the passenger tax said the industry, with an estimated $50 million a year in revenue, should pay its fair share. The money would be designated for improving ports and harbors and other visitor services.

However, opponents said the measure would hurt the tourism industry, and in a one-sided media blitz, pounded away at that theme with mailers and broadcast advertisements.

The measure would impose an excise tax of $46 per passenger per voyage. Another $4 fee would be charged to independently monitor cruise ship pollution controls.

It also would require ships disclose the commissions they make from onshore businesses, a requirement that is already on the books in state law but is not enforced.

Gershon Cohen of Haines, one of two primary sponsors of the ballot measure, said it showed that Alaskans wanted change. His partner, Joe Geldhof of Juneau, said Alaskans saw through a slick advertising campaign.

''It made them question who was paying for this and who was running this campaign, and when they figured it out, it turned people off,'' Geldhof said.

According to the NorthWest CruiseShip Association, Alaska faces stiff competition from other cruise destinations and passing the initiative would discourage tourism. It also would leave visitors less money to spend once they got to Alaska, according to the association.

''Anybody who's taken the time to read the initiative or tried to understand it, by and large, they say, 'This is a bad idea,''' said John Shively, vice president of Alaska government affairs for Holland America Line

But Cohen said the industry campaign was filled with ''fear mongering and misrepresentations.''

With airplane tickets, alcohol purchases, onboard tips and shopping, cruise passengers typically spend $3,000 to $4,000. The head tax would add 1 percent to 1.5 percent and amount to about $7 per day, Cohen said.

''We believe it's ridiculous that paying $7 per day to be in Alaska ... is somehow going to stop someone already committed to paying $3,000 to $4,000.''

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