Tax reform won't impact cruise industry

    Juneau, Alaska (KINY) Alaska's U.S. Senators report the cruise ship industry dodged a possible tax increase due to the tax reform bill that passed the Senate Saturday.

    The provision would have applied to foreign ships that visit Alaska.  They would have been assessed a corporate tax based upon the time they spent in U.S. Waters.  The provision could have raised $700 million over the next 10 years.  Cruise ships to Alaska often spend more time in the water than say a cruise ship from South Florida visiting the Bahamas and the Caribbean.

    More than 1 million tourists came to the state on board cruise ships in 2017 and an increase is expected in 2018.

    The tax bill also provides tax benefits for Alaska Native Corporations to encourage contributions to trusts that help the health, education and welfare of beneficiaries.

    The bill is now headed to a conference committee made up of senators and house members to iron out differences in the bill.  While the Senate included the provision for the cruise industry the house version did not.


    More from News of the North

    Current Conditions

    Crude Oil Price