The cruise industry has moved a tax increase after Alaska U.S. senators helped strike the provision from the tax bill that passed the Senate.
Murkowski and Sullivan called the package “A vital milestone in our efforts to secure future of Alaska.”
The measure would provide some tax benefits for Native corporations of Alaska as well to encourage contributions to the trusts that promote education, the health and the welfare of beneficiaries and to boost the growth of funds.
The tax provision of cruise ship could have impacted tourism, which is a major driver of economy of Alaska that has otherwise slowed during recession period because of persistently low oil prices.
This summer, over 1 million tourists reach to the state on cruise ships, and according to industry anticipates it will break that record during the summer cruise season of 2018, said John Binkley, who is the president of Cruise Lines International Association Alaska (CLIAA), a trade group.
“For Alaska economy, it is one of the brightest spots in and I think Senator Sullivan and Senator. Murkowski felt that this would be another blow to the economy of Alaska if we tried to slow down that growth or restrict that growth in that sector,” he said.
Binkley said, the provision would have applied to ships of foreign origin, assessing a corporate tax depending based on their time spend in U.S. waters. According to one estimate, over 10 years, it would have raised $700 million, though on this Binkley said, “There were no hearings in this regards that vet this estimate.”