Tax was taking $25 million a year from dock workers and other support industries

Alaska Governor Sean Parnell has signed a bill which would lower taxes dramatically on tourists visiting the State. His Cruise Ship legislation reduced the passenger tax from $46 per person to $19.50.

"Through this legislative session it became very clear as I talked to small business owners around the state that what they needed was for state government to step out of the way and create more opportunity."

Parnell continued:

"This really gives Alaskans, thousands of Alaskans, hope that we have turned the corner now and we will no longer have the exodus of ships and capacity out of our state and that we will start to build the business back and get those Alaska jobs back for Alaskans."

According to AK3 one industry source estimated that the tax was "taking about $25 million a year away from docks and other work supporting the industry and addressing tourism impacts."

The tax was snuck into a proposition approved by voters, that was pushed by environmentalists and other liberal special interest groups in 2006. The result of the tax was almost immediately felt by Alaska workers along the southeast Coast.

Juneau lost a ship that was permenently berthed at the city's harbour. From JuneauEmpire.com, July 26:

Royal Caribbean this year has relocated the 2,100-berth Serenade of the Seas from Alaskan waters after a dispute with the state over the commercial passenger vessel tax, commonly known as the "head tax," established by voters in 2006.

Overall, Juneau is expecting 14 percent fewer cruise ship visitors this year.

The Legislature has reduced the head tax, beginning next year, and also rolled back associated environmental regulations in a effort to win ship visits in future years.