$50 tax on cruise passengers passing

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 to disclose the commissions they make from onshore businesses, a requirement that is already on the books in state law but is not enforced.

Joe Geldhof, of Juneau, one of two primary sponsors of the ballot measure, 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,” he said.