Cruise lines sue Skagway, Alaska over new shore excursion tax policy

Wednesday, 28 May, 2025 0

Cruise lines have taken legal action against Skagway, Alaska for what they claim is overreaching on a new sales tax policy for shore excursions.

Lawmakers in Alaska have recently changed an ordnance to tax the full amount for shore excursions – including the commission cruise lines pocket for marketing the tours.

A lawsuit filed on behalf of cruise lines by Cruise Line International Association claims this violates Alaska and Federal laws.

The suit claims the booking service for these tours are mostly done online and outside Skagway’s jurisdiction so it cannot claim tax on this.

They say this amounts to ‘double taxation.’

Skagway lawmakers passed the amended ordinance last year.

Skagway says this is a fairer tax policy.

Skagway Borough Manager Emily Deach, who is named as a defendant, said: “Skagway made this change to treat tour sales by the cruise lines the same as other sales of products and services within the municipality.”

The CLIA lawsuit wants the commission amount removed from taxation and is claiming compensation for legal costs.



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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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