CITY OF HOMER
HOMER, ALASKA
City Manager
A RESOLUTION OF THE HOMER CITY COUNCIL EXPRESSING SUPPORT FOR HB 24 ENTITLED “ AN ACT RELATING TO COMMERCIAL PASSENGER VESSEL OPERATORS; AND PROVIDING FOR AN EFFECTIVE DATE”.
WHEREAS, The cruise ship industry pays no corporate income tax, sales tax, or passenger tax to the State of Alaska; and
WHEREAS, The cruise ship industry is growing steadily and earns a generous income in the waters and communities of Alaska taking advantage of our harbors, airports, railroads, roads, and hospitals; and
WHEREAS, Representative Paul Seaton has introduced HB 24 entitled “ AN ACT RELATING TO COMMERCIAL PASSENGER VESSEL OPERATORS; AND PROVIDING FOR AN EFFECTIVE DATE”; and
WHEREAS, HB 24 is intended to help support the costly state and local infrastructure that the cruise ship industry and its passengers enjoy; and
WHEREAS, HB 24 establishes a $75 dollar per passenger, per voyage, tax on the operator of vessels with an overnight capacity of over 12 passengers (cruise ships) and provides that one third of the revenue generated may be shared with affected ports of call and destination ports; and
WHEREAS, the Legislative Research Services Office has estimated that this tax, if implemented, would have generated approximately $60 Million dollars in 2004; and
WHEREAS, In his Sponsor Statement, Representative Seaton suggests that the Legislature could use the remainder of the revenue generated for tourism marketing matching grants and as a recurring source of revenue for a statewide revenue sharing or community dividend program; and
WHEREAS, The City of Homer would benefit from HB 24 because it has the potential to provide revenue to support port and harbor infrastructure and provide a mechanism for funding the Revenue Sharing or Community Dividend Programs.
NOW, THEREFORE BE IT RESOLVED that the Homer City Council finds that passage of HB 24 is in the best interest of the State and its communities; and
Page Two
Resolution 05-19
City of Homer
BE IT FURTHER RESOLVED that the Council hereby expresses its strong support for HB 24 and urges that the Legislature and Governor pass it into law.
PASSED AND ADOPTED by the Homer City Council this 14th day of February, 2005.
CITY OF HOMER
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JAMES C. HORNADAY, MAYOR
ATTEST:
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MARY L. CALHOUN, CMC, CITY CLERK
Fiscal Note: N.A.