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Commercial Passenger Vessel Excise Tax
2014 Annual Report


Commercial Passenger Vessel Excise Tax Reports





AS 43.52.200 – 295
DESCRIPTION
Alaska imposes an excise tax on travel on commercial passenger vessels, typically cruise ships that have 250 or more berths and provide overnight accommodations in the state’s marine waters. Passengers traveling on qualified commercial passenger vessels are liable for the tax.

RATE
The commercial passenger vessel excise tax rate is $34.50 per passenger, per voyage.

RETURNS
Cruise ship companies and commercial passenger vessel owners file returns and pay taxes monthly. The due date is the last day of the month following the month in which the voyages ended.

EXCEPTIONS
The CPV excise tax does not apply to passengers onboard a commercial passenger vessel that does not anchor or moor in state marine waters with the intent to allow passengers to disembark.

DISPOSITION OF REVENUE
The Division deposits all proceeds from the CPV excise tax into the Commercial Vessel Passenger (CVP) Tax Account in the general fund. Subject to appropriation by the legislature from this account, the Division distributes

$5 per passenger to each of the first seven ports of call in Alaska. The tax is further reduced by any municipal taxes, imposed on a passenger, that were in effect prior to December 17, 2007.

HISTORY
2006 - The CPV excise tax was enacted by 2006 Primary Election Ballot Measure No. 2. The measure was approved by voters at the primary election of August 26, 2006. The results of the election were certified September 18, 2006 and the initiative’s provisions became effective December 17, 2006.

2010 - During the 2010 legislative session, the CPV tax was reduced from $46 to $34.50 per passenger. The tax was further reduced by any municipal taxes imposed on a passenger that were in effect prior to December 17, 2007 - This legislation increased the number of ports of call which may receive $5 per passenger from 5 to 7 and removed the provision that prohibited a port of call from sharing in the CPV revenue if it imposed its own tax. The legislation also repealed the regional cruise ship impact fund. In addition, the 2010 amendment changed the definition of a voyage by adding "on the state's marine water" following "more than 72 hours". These changes are effective for the 2011 cruise season.




Data with additional years.

  Collections Summary

Fiscal Year

2014 2013 2012 2011

   Tax Collections

$18,350,089 $17,174,502 $16,372,480 $31,997,310

   Shared with Municipalities

(15,858,558) (14,394,385) (14,165,215) (9,145,743)

   Regional Cruise Ship Impact Fund (State)

0 0 0 (8,757,054)

   Retained in General Fund

$2,491,531 $2,780,117 $2,207,265 $14,094,513


  Filing Information

Fiscal Year

2014 2013 2012 2011

   Number of Returns

132 132 133 131

   Number of Taxpayers

10 12 11 14





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