Dear Editor: I am writing in response to David Rice, who asked why more of the cruise ship head tax revenue is not being shared with the residents of Sitka.
In 2022, the Alaska Supreme Court ruled that head taxes must be used in a way that benefits the cruise ships themselves, not just the tourism industry or city infrastructure.
The court clearly said that using the head tax in any other way violates the Constitution. In other words, the city can’t use the head tax to lower utility rates, fix potholes, or anything else that does not directly benefit the cruise ships without breaking the law.
I believe, for example, this is why the restroom trailer used around Lincoln Street in the summer is locked on days there are no ships in town, even if Sitka is having a parade; it was purchased with head tax funds, and must be used only to benefit the cruise ships.
However, unlike the head tax, the extra sales tax revenue from tourists is being used for the general benefit of the citizens of Sitka. That extra revenue already helps pay to keep the city roads plowed, the utilities running, the public safety departments funded, and the teachers employed. Imagine how much greater the tax burden would be on the citizens of Sitka if we weren’t collecting sales tax revenue from tourists. This, of course, is in addition to the voter-approved 1% summer sales tax increase that pays for school maintenance.
Yes, the tourists are also helping to pay to keep our schools maintained, and I for one think that is great!
Chad Goeden, Sitka
