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Commercial Passenger Vessel Excise Tax

Frequently Asked Questions





Sections:
  • General Questions

  • Tax Returns and Payment



  • General Questions

    What is the CPV Excise Tax?
    How is “commercial passenger vessel” defined for purposes of the CPV Excise Tax?
    How is “passenger” defined for purposes of the CPV Excise Tax?
    Are there exemptions from the CPV Excise Tax?
    Who is liable for the CPV Excise Tax?
    What is the CPV Excise Tax rate?
    Who collects and remits the CPV Excise Taxes?
    What if a passenger takes "back-to-back" cruises?
    What if the vessel owner doesn’t collect the tax from the passenger?


  • What is the CPV Excise Tax?

  • The CPV Excise Tax is a tax imposed on passengers traveling on commercial passenger vessels providing overnight accommodations that anchor or moor on the state's marine water with the intent to allow passengers to embark or disembark. The CPV Excise Tax is only imposed if the voyage lasts more than 72 hours on the state's marine water.

  • How is “commercial passenger vessel” defined for purposes of the CPV Excise Tax?

  • A “commercial passenger vessel” is defined as a vessel that has 250 or more berths used in the common carriage of passengers. Noncommercial vessels, warships and vessels operated by the state, the United States or foreign governments are not subject to the CPV Excise Tax.

  • How is “passenger” defined for purposes of the CPV Excise Tax?

  • A “passenger” is defined as a person whom a common carrier has contracted to carry from one place to another. Crew, entertainers and other contract workers on board are not subject to the CPV Excise Tax.

  • Are there exemptions from the CPV Excise Tax?

  • The CPV Excise Tax does not apply to passengers aboard a commercial vessel that does not anchor or moor in Alaska marine waters with the intent to allow passengers to disembark.

  • Who is liable for the CPV Excise Tax?

  • Passengers traveling aboard a commercial vessel are liable for the payment of the CPV Excise Tax. The tax shall be collected from the passenger by the person who provides travel aboard a commercial vessel and shall be paid to the department in the manner and at the times required by the department by regulation.

  • What is the CPV Excise Tax rate?

  • The CPV Excise Tax rate is $34.50 per passenger per voyage.

  • Who collects and remits the CPV Excise Taxes?

  • Commercial passenger vessel owners providing travel to passengers aboard a commercial vessel are required to collect the tax from passengers and remit it to the Department of Revenue.

  • What if a passenger takes "back-to-back" cruises?

  • The CPV Excise Tax is levied on each voyage lasting 72 hours or more on the state's marine water. If a passenger books "back-to-back" cruises, the CPV Excise Tax is due on each cruise if the vessel owner bills the passenger for two separate voyages. If, however, the "back-to-back" cruises are billed as a single voyage, the CPV Excise Tax is due once.

  • What if the vessel owner doesn’t collect the tax from the passenger?

  • Although the CPV Excise Tax is imposed on the passenger, the vessel operator is responsible to pay the tax even if the owner failed to collect the tax from the passenger.

    Tax Returns and Payment

    When is the tax return due?
    What if the due date is on a weekend or holiday?
    I did not have any taxable voyages this month. Do I still need to file a tax return?
    How do I file my tax return?
    What happens if I do not file my tax return by the due date?
    When is the tax payment due?
    How can I make a tax payment?
    What happens if I do not submit my payment by the due date?
    Will I be charged interest?


  • When is the tax return due?

  • Tax returns are filed monthly. The tax return is due on the last day of the month following last day of the month following the month in which the voyages were completed. For example, the tax return for a voyages that ended in May is due June 30.

  • What if the due date is on a weekend or holiday?

  • If the due date falls on a weekend or holiday, the tax return is due the next business day. A holiday means an Alaska state holiday or a bank holiday observed by the Federal Reserve System. Holidays include Seward’s Day in March and Alaska Day in October but do not include other states’ holidays such as Emancipation Day.

  • I did not have any taxable voyages this month. Do I still need to file a tax return?

  • No. A tax return only has to be filed if you had taxable activity for the month.

  • How do I file my tax return?

  • Effective July 1, 2017, all tax returns must be filed electronically using Revenue Online . If you are unable to file a return electronically, please contact the Tax Division at 907.269.6620.

  • What happens if I do not file my tax return by the due date?

  • Returns that are not filed by the due date are subject to a failure to file penalty of 5% of the unpaid tax for each 30 day period or portion of a period the return is late, up to a maximum of 25%.

  • When is the tax payment due?

  • The tax payment has the same due date as the tax return. The weekend and holiday rule also applies to payments.

  • How can I make a tax payment?

  • Payments can be made by Automated Clearing House (ACH) debit payments using Revenue Online . Payments can also be made by wire transfer, check, or cash.

    Vouchers to include with your payment are available in Revenue Online and include all necessary instructions.

    The Department of Revenue cannot accept ACH credit or credit card payments.

    Please note that if your total payment exceeds $100,000 you are required to pay electronically or by wire transfer.

  • What happens if I do not submit my payment by the due date?

  • If the full amount of tax is not paid when due, a failure to pay penalty of 5% of the unpaid tax may be assessed for each 30 day period or portion of the period the payment is late, up to a maximum of 25%.

    If during any period, or portion of a period, both the failure to file and failure to pay penalties are applicable, only the failure to file penalty is imposed.

  • Will I be charged interest?

  • Under Alaska Statute 43.05.225, interest will be assessed on any unpaid or delinquent tax. Interest is compounded quarterly at the applicable rate each quarter. See here for the current interest rate.