Legislature(2009 - 2010)

2010-03-26 Senate Journal

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2010-03-26                     Senate Journal                      Page 1983
SB 311                                                                                                                        
SENATE BILL NO. 311 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
             "An Act relating to a corporation income tax credit                                                                
             for contributions to a qualified trade association                                                                 
             awarded a contract by the Department of Commerce,                                                                  
             Community, and Economic Development for                                                                            
             planning and executing a destination tourism                                                                       
             marketing campaign made by a person that derives                                                                   
             income from the sale of goods or services to visitors                                                              
             to the state; relating to the excise tax on passengers                                                             
             traveling on commercial passenger vessels providing                                                                
             overnight accommodations in the state's marine                                                                     
             waters; and providing for an effective date."                                                                      
was read the first time and referred to the Finance Committee.                                                                  
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
 Fiscal Note No. 2, Department of Revenue                                                                                       
 Fiscal Note No. 3, Department of Commerce, Community and                                                                       
  Economic Development                                                                                                          
Governor's transmittal letter dated March 25:                                                                                   
Dear President Stevens:                                                                                                         
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill that provides for (1) a corporate income tax                                                             
credit for contributions to the qualified trade association that plans and                                                      
executes a destination tourism marketing campaign, and (2)                                                                      
amendments to the commercial passenger vessel excise tax program to                                                             
reduce the tax rate and provide for a periodic review of the tax rate to                                                        
ensure that it remains commensurate with costs of hosting passengers                                                            
in Alaska.                                                                                                                      
After decades of steady growth in cruise ship passenger visits to                                                               
Alaska, Alaska is facing a 17 percent decline in cruise visitation this                                                         
summer. Currently, that would translate into 140,000 fewer passengers                                                           

2010-03-26                     Senate Journal                      Page 1984
coming here during the four-month cruise season, fewer Alaska jobs,                                                             
and less revenue for Alaska's small businesses. In recognition of the                                                           
significant impact this decline in cruise ship travel has on Alaska, I                                                          
propose legislation to increase tourism marketing through a corporate                                                           
income tax credit mechanism, and a reduction of the excise tax                                                                  
imposed upon passengers visiting Alaska by cruise ship. I am also                                                               
proposing a periodic review to assess the projected community needs                                                             
and use of appropriations to safely and efficiently host visitors in                                                            
We can grow our economy by bringing more visitors to fuel our own                                                               
Alaska businesses. In short, we should make Alaska a more affordable                                                            
destination and send a message that we welcome travelers.                                                                       
I urge your prompt and favorable action on the bill.                                                                            
Sean Parnell