The Alaska Cruise Association is suing the state on the grounds that a 2006 voter-approved head-tax is unconstitutional.

Filed in U.S. District Court in Anchorage against state Revenue Commissioner Pat Galvin, the suit seeks relief from a $46 per-passenger tax. The industry association alleges the tax is unconstitutional because it discriminates against interstate commerce and uses money from maritime visitors for purposes unrelated.

The state has collected nearly $120 million from the tax from 2007 through July 2009, according to the Department of Revenue.

Part of the problem, according to the industry and some lawmakers, is how the Legislature has seen fit to spend those dollars. Some has benefited communities far from ports of call -- for example, $1 million for the Alaska Zoo in Anchorage; $1 million for upgrades to the Carlson Center in Fairbanks; and $430,000 for a railroad station in Wasilla.

The lawsuit claims that spending is an illegal use of the tax revenues because it fails to directly benefit those who pay the bill.

The association isn't asking the courts for any of the money already collected to be returned; instead, the lines don't want to be forced to continue paying the tax.

Meanwhile, the House Judiciary Committee has scheduled a hearing in Anchorage next week to determine whether the head tax is legal. After taking testimony from industry representatives, including the association, lawmakers are expected to hold an executive session with the state's Department of Law for an update on the suit - a meeting that was scheduled days in advance of the industry's filing.

Rep. Max Gruenberg, D-Anchorage, is on the committee. A lawyer by profession, he's studied the tax issue and called a meeting of legislators about four weeks ago to discuss the constitutionality concerns as industry attorneys warned of the impending suit.

His take is that the tax is allowable, provided it's spent on the right things - improvements that benefit the passengers being taxed, more or less. But even that interpretation has gaps, he acknowledged.

Alaska's cruise industry is sailing on rough seas.

Numbers are down, paralleling a general economic decline, driving lines to offer berths at bargain rates simply to fill boats. Several companies have said they'll steer ships away from Southcentral ports in coming seasons.

That is likely to impact the Interior's visitor industry as well - according to the Fairbanks Convention and Visitors Bureau, half of the Interior's summer visitors reach Alaska via a cruise ship.

Association president John Binkley said cruise ship visitation is expected to decline 30 percent next year as lines cull stops at Southcentral ports and focus on the most popular, Juneau and Ketchikan.

The association represents nine lines, including Carnival Cruise Lines, Celebrity Cruises, Crystal Cruises, Holland America Line, Norwegian Cruise Line, Princess Cruises, Regent Seven Seas Cruises, Royal Caribbean International and Silversea Cruises. According to a McDowell Group study, the cruise industry feeds $1.35 billion into Alaska's economy annually.

Contact Rena Delbridge at rena@alaskadispatch.com