The Law Department of the City and Borough of Juneau determined that goods and services sold aboard cruise ships within CBJ boundaries are subject to sales tax under the CBJ sales tax code — the same sales tax code regulating every other business in Juneau. What took so long?
Since 2011, one major cruise ship company has collected and remitted sales taxes for goods and services purchased on board within city boundaries, while all the other major cruise ship companies have not. Does this seem fair?
Since the CBJ can no longer simply ignore the tax code violations of most major cruise ship companies, the Assembly wants to create a special provision to exempt the cruise lines from both the penalties and the requirement to collect and remit taxes. Does this seem fair?
Why would the city want do this? One city official defends the proposed cruise ship tax exemption as an effort to “… be a good neighbor” with the cruise ship industry. Is the Assembly proposing the exemption because of threats by cruise ship industry officials to spend less time in port if their privileged status is rescinded? Does this seem fair?
Another reason offered by city officials is that the potential $100,000 in revenue to our treasury is insignificant. This is the amount of tax on about $2,000,000 worth of sales in basically one quarter of the year. Does this seem insignificant? Does this seem fair?
Awarding a sales tax exemption for on-board purchases effectively gives a 5 percent sales competition advantage to an already enormous off-shore industry at the expense of smaller, on-shore merchants. Does this seem fair?
City leaders struggling to decide how best to maintain a vibrant and healthy community, in the face of economic hard times, have much to explain to the rest of Juneau’s hard-working, tax-remitting, shore-based businesses when they ask, “Does this seem fair?”
The ordinance is scheduled for introduction to the Assembly on Feb. 13 (no public comment). The ordinance is on the Assembly agenda for public comment and action on March 6. Let the Assembly know your opinion by email at any time or by attending the Assembly meetings and commenting.
Two Concerned Neighbors,
Clay Good and Terry Hoskinson
Juneau
