Cruise industry sues Skagway over new tax policy

Cruise industry sues Skagway over new tax policy

A cruise ship docks in Haines at the start of the 2025 season. (Avery Ellfeldt/KHNS) The cruise industry is suing Skagway over a new policy that makes a controversial change to how the borough taxes excursions sold by cruise companies. Skagway charges local sales tax on tours that start and finish in the borough. Historically, that excluded commission fees that cruise lines slap on top of tour prices in exchange for arranging the excursion. But …

Skagway Enacts New Tax Policy and Cruise Lines Don't Like It

Skagway, Alaska, has officially enacted a new sales tax policy on land tours and shore excursions – and the cruise lines don’t like it one bit. Cruise companies have long been exempted from including commission fees in the taxes on Skagway shore excursions that are sold by the cruise lines. For context, the commission fees are usually paid to the cruise line on top of the tour price for arranging the excursion – which is how the cruise brand pro…