Panel proposes tax cut for aircraft, new tax on boats

Posted: Friday, November 09, 2001

JUNEAU (AP) -- A plan to offset reduced taxes on local air carriers with a new tax on smaller commercial passenger boats was approved by a Juneau Assembly committee on Wednesday.

Charter fishing boats and other commercial passenger boats would be taxed between $120 and $720 depending on their size. Property taxes on aircraft would be reduced by 60 percent.

The plan would generate $180,000 annually, about $117,000 less that the aircraft taxes raise, said Craig Duncan, city finance director.

Charter fishing boats would be subject to the tax, but commercial fishing boats would not.

Local air carriers had objected that the city taxes aircraft at a higher rate than other businesses.

The plan next goes to the full assembly.

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