Cruise Lines International Association (CLIA) is suing the Alaskan borough of Skagway for implementing a new sales tax policy that affects land tours and shore excursions.
Under the new policy, the borough collects taxes on the full passenger price, including the commission fee cruise lines charge on excursions. Prior to this, cruise lines’ commissions were not taxable.
Skagway's assembly passed the tax ordinance in December 2024 and CLIA sued on behalf of cruise lines on May 8, confirmed the local Skagway radio station, KHNS FM.
CLIA told the station that the tax ordinance risked double taxation and placed undue financial strain on cruise guests.
"The cruise industry has been a long-time partner and vital contributor to Skagway, creating hundreds of jobs and supporting countless small businesses," a CLIA spokesperson told Travel Weekly. "However, we oppose provisions of Ordinance No. 24-12 that violate the US Constitution and Alaska state law by imposing new and duplicative taxes on shore excursions sold by cruise lines."
