2010-03-26                     House Journal                      Page 1905
HB 422                                                                                                                        
HOUSE BILL NO. 422 by the House 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 note(s) apply:                                                                                             
                                                                                                                                
1. Fiscal, Dept. of Commerce, Community, & Economic Development                                                                 
2. Fiscal, Dept. of Revenue                                                                                                     
3. Fiscal, Dept. of Revenue                                                                                                     
                                                                                                                                
The Governor's transmittal letter dated March 25, 2010, follows:                                                                
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
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                                                           
coming here during the four-month cruise season, fewer Alaska jobs,                                                             
and less revenue for Alaska's small businesses. In recognition of the                                                           

2010-03-26                     House Journal                      Page 1906
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                                                            
Alaska.                                                                                                                         
                                                                                                                                
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.                                                                            
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"