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Commercial Passenger Vessel Excise Tax

Frequently Asked Questions





Sections:
  • Commercial Passenger Vessel FAQs



  • Commercial Passenger Vessel FAQs

    What is the CPV Excise Tax?
    How is “commercial passenger vessel” defined for purposes of the CPV Excise Tax?
    How is “passenger” defined for purposes of the CPV Excise Tax?
    Are there exemptions from the CPV Excise Tax?
    Where do I send my CPV Excise Tax monthly return?
    How do I get a copy of the CPV Excise Tax return and instructions?
    Who is liable for the CPV Excise Tax?
    What is the CPV Excise Tax rate?
    Who collects and remits the CPV Excise Taxes?
    When are the CPV Excise Taxes due?
    What if I fail to file a return and pay taxes due?
    What if the vessel owner doesn’t collect the tax from the passenger?
    What if I book a "back-to-back" cruise?
    Can I file my tax return online?


  • What is the CPV Excise Tax?

  • The CPV Excise Tax is a tax imposed on passengers traveling on commercial passenger vessels providing overnight accommodations that anchor or moor on the state's marine water with the intent to allow passengers to embark or disembark. The CPV Excise Tax is only imposed if the voyage lasts more than 72 hours on the state's marine water.

  • How is “commercial passenger vessel” defined for purposes of the CPV Excise Tax?

  • A “commercial passenger vessel” is defined as a vessel that has 250 or more berths used in the common carriage of passengers. Noncommercial vessels, warships and vessels operated by the state, the United States or foreign governments are not subject to the CPV Excise Tax.

  • How is “passenger” defined for purposes of the CPV Excise Tax?

  • A “passenger” is defined as a person whom a common carrier has contracted to carry from one place to another. Crew, entertainers and other contract workers on board are not subject to the CPV Excise Tax.

  • Are there exemptions from the CPV Excise Tax?

  • The CPV Excise Tax does not apply to passengers aboard a commercial vessel that does not anchor or moor in Alaska marine waters with the intent to allow passengers to disembark.

  • Where do I send my CPV Excise Tax monthly return?

  • CPV Excise Tax returns must be sent to the following address:

    Alaska Department of Revenue
    Tax Division
    PO Box 110420
    Juneau, AK 99811-0420

  • How do I get a copy of the CPV Excise Tax return and instructions?

  • Find forms online at www.tax.alaska.gov/programs/programs/index.aspx?20000. You may also request forms and instructions by calling (907) 269-6620.

  • Who is liable for the CPV Excise Tax?

  • Passengers traveling aboard a commercial vessel are liable for the payment of the CPV Excise Tax. The tax shall be collected from the passenger by the person who provides travel aboard a commercial vessel and shall be paid to the department in the manner and at the times required by the department by regulation.

  • What is the CPV Excise Tax rate?

  • The CPV Excise Tax rate is $34.50 per passenger per voyage.

  • Who collects and remits the CPV Excise Taxes?

  • Commercial passenger vessel owners providing travel to passengers aboard a commercial vessel are required to collect the tax from passengers and remit it to the Department of Revenue.

  • When are the CPV Excise Taxes due?

  • CPV Excise Taxes are due on the last day of the month following the month in which the voyages were completed. The tax is remitted by filing a tax return. CPV owners are required to file a return and report the number of passengers.

  • What if I fail to file a return and pay taxes due?

  • The Tax Division is required to assess civil penalties: 5% shall be added to a tax for each 30 day period, or fraction thereof, a tax return is filed late or payment is late, up to a maximum of 25%.

  • What if the vessel owner doesn’t collect the tax from the passenger?

  • Although the CPV Excise Tax is imposed on the passenger, the vessel operator is responsible to pay the tax even if the owner failed to collect the tax from the passenger.

  • What if I book a "back-to-back" cruise?

  • The CPV Excise Tax is levied on each voyage lasting 72 hours or more on the state's marine water. If a passenger books "back-to-back" cruises, the CPV Excise Tax is due on each cruise if the vessel owner bills the passenger for two separate voyages. If, however, the "back-to-back" cruises are billed as a single voyage, the CPV Excise Tax is due once.

  • Can I file my tax return online?

  • Yes, you may file your Commercial Passenger Vessel Excise Tax Monthly Return and pay your tax using Revenue Online at: https://online-tax.alaska.gov