YOU BOUGHT WHAT CLIA sues city of Juneau

Posted on 04/15/2016 | About Juneau, Alaska

When cruise passengers arrive at the port of Juneau, Alaska they pay head tax fees to the city, collected by the cruise lines. CLIA is suing the city alleging that a portion of those fees have been used to pay for projects that do not directly affect (benefit) cruise passengers. One issue involved is the US $10 million price of a 50-foot whale sculpture set in an infinity pool.

On Tuesday CLIA filed a lawsuit against the city and bureau of Juneau in a federal court in Anchorage contending a violation of federal restrictions on entry fee taxes. Juneau charges a $5 entry fee per cruise ship passenger and a $3 port development fee. 

Alaska's association president John Binkley said "The Constitution allows you to charge a fee, but it has to be used in conjunction with that vessel. You can't take the money and use it for city operations." 

Aside from the pricey whale sculpture, the cruise association cites upgrades to the city's waterfront, more than 1.6 km from the cruise dock. The lawsuit also lists $22 million spent on government operating expenses, $2 million for city bus services and $447,000 for upgrades to a private dock that cruise ship vessels and passengers are not able to use. 

Named in the lawsuit is the Mayor, city manager and finance director. Juneau city administrators say they're surprised by a lawsuit from the cruise industry and deny allegations of misuse of fees paid by visitors who arrive in the Alaska city via cruise ship. 

City Manager Kim Kiefer says the city has a public process for use of the funds and is working to create a welcoming community.