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Alaska tax tidbit: cruise tax cut

Alaska flag One of the most popular ways to see Alaska is via cruise ship, and that travel option may soon be a bit cheaper.

Gov. Sean Parnell wants the legislature to cut the per passenger tax from $46 to $34.50. In addition, the governor's proposal would allow for deductions of local charges which would in some cases bring the cruise head tax down to less than $20.

If Last Frontier lawmakers do approve the tax cut, it also could help resolve a federal lawsuit fighting the state's cruise tax, which was enacted in 2006 as a way to raise money for port infrastructure. The Alaska Cruise Association claims the head tax is onerous and unconstitutional.

While reduced tourism is a concern, passage of the reduced tax is not a done deal.

So if you're planning an Alaskan cruise, you might want to wait until after April 18. That's the day the state legislature adjourns and we should know by then if the tax rate drops.

Tax trip around the United States: This post is part of our series highlighting tax information from the 50 U.S. states and Washington, D.C. You can read other state tax blurbs at our Complete menu of tasty state tax tidbits.

The State Tax Departments page provides links to official state and District of Columbia revenue Web sites so that you can find out more about your home's tax laws and filing requirements.

As we work through the 2010 tax season, a different state will be featured each day as noted in Don't forget your state taxes! Check back to see what tax tidbit we share about your home.

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Alaska tax filing

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Did you know that the infamous "bridge to nowhere" was designed to serve Alaska cruise ship passengers flying in to catch the ships at Ketchikan?

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