To amend the Act of July 5, 1884, to permit the imposition of taxes on vessels operating as tourist accommodations, and for other purposes.

119th Congress Introduced by Ed Case

Adds authority to tax cruise ships and their passengers/crew, with state/local governments able to impose such taxes under Constitution, expanding cruise tourism taxes.

Sponsor introductory remarks on measure. (CR E638)

Overview

Bill: H.R. 9543

Session: 119th Congress

Purpose: To amend the Act of July 5, 1884 to authorize the imposition of taxes on vessels operating as tourist accommodations, including cruise ships, and for other related purposes.

Introduced: June 30, 2026 by Rep. (sponsor) with a co-sponsor listed as Ed Case

Committees: Judiciary; Transportation and Infrastructure

What the bill would do

Amendments to the Act of July 5, 1884 (33 U.S.C. 5), specifically:

Expand permissible impositions (taxes) to include:
Taxes on vessels operating as cruise ships
Taxes on the passengers or crew of such vessels

Clarify authority:

Non-Federal interests would be authorized to levy and collect these taxes under specified constitutional mechanisms (Clauses 2 and 3 of section 10, and Clause 3 of section 8, Article I of the Constitution). In other words, state or local governments could impose these taxes if authorized by Congress.

Definitions:

“Cruise ship” is defined as any vessel that:
docks at any port in the United States, and
charges a fee for and provides an accommodation or living quarters on such vessel to transients (i.e., temporary guests).

Key provisions and changes

New tax authority:

Adds a fourth category of imposition to existing authorities under the Act: taxes on cruise ships and the passengers or crew.

Consensual framework:

Allows non-Federal entities to levy and collect these taxes, subject to constitutional authorization mechanisms referenced (Article I, Sections 8 and 10).

Scope of cruise ships:

Explicitly targets vessels that operate as tourist accommodations on U.S. ports and serve transient passengers.

Who/what would be affected

Vessels operating as cruise ships that dock in U.S. ports

Passengers and crew of such cruise ships

State or local governments (non-Federal entities) seeking to impose and collect these taxes, subject to the constitutional framework outlined

Federal legislative framework would interact with existing tax and regulatory authorities administered by state/local governments

Procedural and timeline aspects

Version introduction: June 30, 2026

Referral: Committee on the Judiciary; Committee on Transportation and Infrastructure (jurisdictional for provisions related to each committee’s scope)

No text provided on effective dates or phase-in timelines in the excerpt; such details would likely be addressed during committee consideration and potential floor debate

Notable considerations

This bill would create a new category of taxable activity associated with cruise tourism, potentially affecting pricing, port revenue, and tourism dynamics.

The mechanism relies on constitutional authorization for non-Federal taxation, implying that federal permission would be required for any state/local imposition of these cruise-related taxes.

The bill provides a precise definition of “cruise ship” to avoid ambiguity about what qualifies for taxation under new provisions.

If you’d like, I can compare this proposal to existing tax authorities for cruise tourism or outline potential fiscal impacts based on typical cruise-visit scenarios.