New Taxes for Texas Ports question

[JYD Hawkeye]

With the new tax laws in Texas ports, I was just curious how it is all working. I understand that when you go thru customs when disembarking, they ask you if you bought any alcohol or tobacco products while you are on the cruise. If you answer " yes ", they send you to a different line to pay the taxes on them. If you purchase a carton of cigarettes on the ship, do they hold it until the end of the cruise like they do the liquor? I read the tax on cigarettes is $15 a carton. Is that accurate ? How long is the delay to claim these products ?

[Sassy19305]

With the new tax laws in Texas ports, I was just curious how it is all working. I understand that when you go thru customs when disembarking, they ask you if you bought any alcohol or tobacco products while you are on the cruise. If you answer " yes ", they send you to a different line to pay the taxes on them. If you purchase a carton of cigarettes on the ship, do they hold it until the end of the cruise like they do the liquor? I read the tax on cigarettes is $15 a carton. Is that accurate ? How long is the delay to claim these products ?

I read in one of the threads that it is only for items remaining in Texas or applicable to Texas residents. I can't verify that, but someone else had posted that information.

[maitaiguy]

I was just wondering how much the new taxes would lead to delays on debarkation day. We have a 1:30 flight to catch and I'm not very worried about the fog because we aren't cruising till the end of May.

 

Long lines getting off the ship? Yeah, I'm concerned.

[JYD Hawkeye]

I read in one of the threads that it is only for items remaining in Texas or applicable to Texas residents. I can't verify that, but someone else had posted that information.

You are correct. Only for Texas residents. Was mostly wondering about the real world applications of how it is being handled. And I tried to kill that dang bug on your' screen twice. LOL !!

Edited February 27, 2014 by JYD Hawkeye

[Sophie Mae]

Just got off the Navigator on Sunday. We did self assist with our luggage so were in the first group off the ship. There was only one person in front of us at the 'taxes' desk. Not sure if you plan to do self assist but our experience was great. We took a taxi to our hotel where we left our car. From the time we were told that we could disembark to the time we reached our car was 45 minutes total.

[Spurschick]

Good question. I have been trying to research as well as I have getting conflicting info. We live in texas but have uk relatives coming over to stay either side of the cruise.

 

I read somewhere it didn't apply to non texas residents BUT they had to prove they were leaving the state within 48 hours.

 

You think there would be somewhere official they would put clarifying details:confused:

[JYD Hawkeye]

Still trying to figure out if cartons of cigarettes are held until the end of the cruise or can you take them to your' cabin to use on the cruise.

[Clarea]

Still trying to figure out if cartons of cigarettes are held until the end of the cruise or can you take them to your' cabin to use on the cruise.

Cigarettes are not held by the cruise line, you can take them upon purchase.

[JYD Hawkeye]

I knew I should have just asked you Bob !! LOL !! Too bad they don't have instant messaging on CC.

[mistshar]

And I tried to kill that dang bug on your' screen twice. LOL !!

 

I'm glad I am not the only one who saw it. LOL

[galavant3]

I wanted to report in after having first hand experience with the new Texas liquor tax.

 

I was trying to compare apples to apples to make sure it made financial sense to buy the bottles on board.

 

I selected three bottles then asked the assistant manager what the tax would be. Based on what I read, I expected the tax to be $3.75 per liter. He told me that it was $3.75 per liter but up to a maximum of $5.50. So, the more bottles, the less tax per bottle. It didn't sound right so I asked if he was absolutely certain. He assured me that, as the assistant manager, he was certain. (he was wrong)

 

To offset the $5.50 (which appears to be a made up number), on board the Navigator, you receive a 10% discount if your purchase exceeds $50 which mine did.

 

When you disembark, you go through customs as usual and then, before leaving the terminal there is a table set up. The people there will be calling out to ask if anyone has liquor. Interestingly, I seemed to be the only person that purchased liquor on this trip because I was literally the only one at the table.

 

I claimed my three bottles and expected to pay the $5.50. I was informed that the cost would be $11.25 (3.75 x 3). I mentioned that the assistant manager on board told me the maximum tax would be $5.50 and she just looked at me (rather sympathetically) and repeated that the amount was $11.25.

 

I found the whole set up to be rather odd. There didn't seem to be any way of enforcing the payment of the tax. Being somewhat paranoid by nature and a rule follower to a fault, I wasn't positive that my name wouldn't appear on some sort of a "liquor list".

 

Also interesting is that I was given three stickers and was told as soon as I reached my destination, I was to apply the stickers to each bottle. I was bored in the car so I did put two of the stickers on but now I have a liter bottle of Bombay Sapphire with no sticker (lost in the car somewhere). My fingers are crossed that TABC doesn't raid my home any time soon.

 

For anyone interested, here is an example. Here at home Johnny Walker Black is $40. On the cruise ship it was on sale for 2/$68 or $34 a bottle. (note that the "regular price on board is $39.99 - exactly what it is here).

 

So, after my 10% discount the price was $30.60 plus the $3.75 tax for a total of $34.35.

 

If I had purchased the $40 bottle locally and paid the 8.25% sales tax, the cost would have been $43.30. So, the net savings to buy on board is $8.95. Of course the savings will vary depending on the brand.

 

I can confirm that you are allowed 1 gallon of liquor duty free (but not Texas tax free). I previously thought it was just one liter.

Edited June 9, 2014 by galavant3

[reallyhooked]

We paid $21 in tax for 6 bottles They didn't ask our address, but DH put the stickers on after we got home.

[galavant3]

We paid $21 in tax for 6 bottles They didn't ask our address, but DH put the stickers on after we got home.

 

I think the 750 ml bottles are taxed a bit lower so that could explain the difference.

[caymancouple]

We were on the April 6th cruise..... 2 couples. One lived in Virginia, one lived in Tennessee. Both WERE MADE TO PAY THE TAX, even though they pointed out they did not live in Texas. No more buying booze on board on a Texas cruise.

[galavant3]

We were on the April 6th cruise..... 2 couples. One lived in Virginia, one lived in Tennessee. Both WERE MADE TO PAY THE TAX, even though they pointed out they did not live in Texas. No more buying booze on board on a Texas cruise.

 

I'm curious to know where you heard that non-Texas residents were not supposed to pay the tax? It makes sense but I haven't seen that.

 

Yes, you absolutely have to do the math to see if it makes financial sense...now more than ever.

[steveru621]

We were on the April 6th cruise..... 2 couples. One lived in Virginia, one lived in Tennessee. Both WERE MADE TO PAY THE TAX, even though they pointed out they did not live in Texas. No more buying booze on board on a Texas cruise.

 

If you are in transit I would think it violates federal inter-state commerce laws. Texas probably thinks they can get away with it because they will intimidate you.

[cb at sea]

I figure, if I can afford to cruise, I can afford to buy my booze at home...too much trouble transporting "cheap" liquor home. Now, if I was driving home..not a problem!

[Goodtime Cruizin]

I paid $11.25 for three bottles. BTW, it is for Texas residents only. If you reside in the state of Texas, you should not be paying any taxes.

 

Our 3 bottles was boxed in the RC liquor cardboard box, it is for this reason I was requested to move to the table. Once there, I was asked if for my Passport or ID. As a Texas resident, I was required to pay.

 

BTW, the math in the above post is/was correct. I'm not sure what the 10% discount was that was mentioned, but we received the C&A 10% disount.

[galavant3]

Once there, I was asked if for my Passport or ID. As a Texas resident, I was required to pay.

 

Interesting. At no point was I asked if I was a Texas resident, nor was I asked for any form of ID. Sounds like they are still working out the kinks.

[Lars2014]

On Navigator in February. Bought carton of cigarettes onboard. Shop does not report what is purchased at least as far as cigarettes. My partner and I smoked most of the carton while onboard. There was a person at the exit door asking if anyone had cigarettes or liquor that they brought back to Texas, everyone said no, even if yes, the pileup of people would be a total mess. Don't know what moron thought this up, people will say anything to get out of the terminal once they have their luggage. If you're going to enforce a law, then come up with a better way to collect.

[Goodtime Cruizin]

A major mis-type on my behalf and I can not make an edit... my post above should read...

 

If you reside outside the state of Texas, you should not be paying any taxes.