Attorney General Dan Sullivan announced last Thursday that the Alaska Cruise Association (ACA) has officially terminated its lawsuit against the state’s excise tax on cruise ship passengers.A stipulation filed with the U.S. District Court for Alaska dismisses with prejudice the lawsuit that was filed against the state last September. In a settlement agreement reached between the state and ACA in April, ACA agreed to dismiss its lawsuit if the governor signed into law a bill passed by the Legislature that reduced the commercial passenger excise tax from $46 per passenger to $34.50 and also provided an offset for passenger taxes paid to local governments. On June 24, Governor Parnell signed into law Senate Bill 312, passed by the Legislature in April, that contained the elements necessary to trigger dismissal of ACA’s lawsuit. The stipulation filed today permanently resolves the legal issues.Source: State of Alaska Department of Law press release of July 1, 2010
