Tuesday, November 26, 2013

$2 cruise tax not legal: suit

NEW YORK, NY - FEBRUARY 06: New York Governor Andrew Cuomo delivers his State of the State and budget proposals at The City College of New York on February 6, 2013 in New York City. Among issues addressed were the cost of the recovery from Hurricane Sandy, policing, economic development and education. His $ 142.6 million executive budget would increase state spending by 2 percent and raise school aid by 4.4 percent, to $ 21 billion. (Photo by Spencer Platt/Getty Images)

Spencer Platt/Getty Images



The controversial new law that Gov. Cuomo signed this month allowing the Hudson River Park Trust to raise money in new ways violates the Constitution, a new lawsuit says.




The controversial new law that Gov. Cuomo signed this month allowing the Hudson River Park Trust to raise money in new ways violates the Constitution, a new lawsuit says.


Under the law, the cash-strapped trust will be able to sell air rights to developers, a move that detractors believe will lead to overdevelopment along the waterfront.


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But the lawsuit filed by Circle Line Sightseeing Cruises and World Yacht on Nov. 14 deals with a separate, lesser-known piece of the legislation they say violates the tonnage clause of the Constitution.


The legislation allows the trust to charge $ 2 per passenger on commercial vessels that use the park’s piers.


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Circle Line and World Yacht say the tonnage clause bars states from imposing duties on business conducted on navigable waters.


“This is an age-old doctrine,” said Richard Emery, lawyer for the plaintiffs.


The companies claim the fees will reduce their net profits and cause headaches because they sell tickets through third parties.


The lawsuit seeks judgment that the legislation violates the Constitution. Its outcome won’t have any effect on rest of the law, including the air rights section.


The trust declined to comment.





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