Ketchikan Repeals Sales Tax Exemption on Cruise Ships

Ketchikan, Alaska, is set to implement a sales tax on goods sold aboard cruise ships while docked, reversing a long-standing exemption that has been in place since 2003. The Ketchikan Borough Assembly voted to repeal the exemption, aligning itself with other Alaskan ports like Juneau and Sitka, and expects to generate between $200,000 and $300,000 annually from the new tax starting April 1, 2025. Borough Attorney Glenn Brown highlighted that the tax levels the playing field for local businesses, which previously faced unfair competition from the tax-exempt cruise ships. The move comes amid growing cruise ship traffic, with Ketchikan's passenger numbers increasing from 800,000 in 2003 to 1.5 million in 2024. Critics have noted challenges in ensuring compliance from cruise lines, as some may close onboard shops to avoid taxation. This change is part of a broader trend in Alaska to enhance local revenue from the booming cruise industry.