Texas Alcohol Excise Tax for Cruisers

[ZJ13820]

I'll be on the sidelines when the riots start when they start searching baggage and S&S statements trying to enforce this 1800s law more.

[RDC1]

I'll be on the sidelines when the riots start when they start searching baggage and S&S statements trying to enforce this 1800s law more.

 

Actually the alcohol import law dates from the 1970's. In 2013 the Texas legislature voted additional money for expanding enforcement to cruise ship terminals.

 

 

On January 4, 2014, cruise travelers disembarking out of the Port of Galveston will need to pay the tax for alcoholic beverages and cigarettes imported into the state that were purchased either on the ship's duty free store or at a foreign port of call. TABC currently operates 20 ports of entry collection facilities along the Texas-Mexico border where the tax is presently collected. During the recent legislative session, the agency was appropriated funding to begin tax collection of imported alcoholic beverages and cigarettes from seaport facilities. The Galveston Port facility will be the first seaport location where this tax will be collected with plans to extend to the Houston-Bayport facility in the fall of 2014.

[ZJ13820]

1800s, 1970. Same thing.

 

Just walk past the table with a smile. Better than giving the middle finger. :)

[eweiss1979]

Texas has been doing this for years at the border crossings with Mexico. I have family in Monterrey, Mexico and drive there twice a year. Customs always asks the same questions and if bring over tequila you will get taxed. Trust me with what those officials have to deal with on daily basis I wouldn't mess with them. Ive seen some pretty crazy stuff at the border go down. Seems only logical they would enforce at water ports also.

[eweiss1979]

But the irony is the home of the tea party enforces a similar tax to the original Boston tea party protest. So the next time you smuggle your "tea" on land and then vote for these fools I hope you realize how hypocritical that actually is.

[IPlayWithString]

When we came back from our last cruise back in July, it seemed like those with alcohol were on the honor system as they weren't really making (or didn't seem to be, anyway) any effort to really steer those who'd purchased alcohol to the table where they were supposed to pay their excise tax.

[GottaLuvCruising]

If you purchase a wine package on board, 2nd day or later, to be consumed on board, do Texas taxes have any effect? (I read something about purchases day one, but can't remember details.)

[bptex]

If you purchase a wine package on board, 2nd day or later, to be consumed on board, do Texas taxes have any effect? (I read something about purchases day one, but can't remember details.)

 

As long as you didn't buy it while in Texas waters then you shouldn't be taxed by Texas. Carnival buys alcohol to sell specifically in Texas as per their TABC license. Once you hit international water they can switch over to booze from other sources that aren't taxed. They just choose to do the switch on day two since it's easier than trying to explain the laws and switch out stamped bottles. If for whatever reason they have to sell stamped bottles though I'd imagine they'd probably relay the tax to you.

 

Technically they don't have to charge you a tax at all even in Texas but they'd be losing money. However they still can't sell anything without a Texas tax stamp while in Texas.

[sailor_jimc]

When Homeland Security "outlawed" carry on liquids on airline flights, it all but killed the duty free liquor fun anyway. You can't put it in your carry on or it gets confiscated. And you can put it in your checked bags because you will blow past the weight limits with a couple of bottles.

 

The little bit of savings you get from duty free does not make the hassle worth it. And I check prices before I leave home and rarely do I find the liquor prices to be all that great in the ports.

[T&Dcruisers]

When we sailed out of Galveston last March, we specifically asked an officer/agent and he said, "you're leaving the state today, right?" We were. He told us we didn't need to stop, nor did we need to pay since we were leaving Texas.

[Easton13A]

Alcohol laws in general in Texas are all kinds of stupid, this is just one example. Technically, US Customs agents at airports are also supposed to enforce the tax for the state on alcohol imported from overseas, but they rarely do.

[ZJ13820]

Seems like a unnecessary hassle having to switch out the Texas stamped alcohol with the non-stamped alcohol day 2 of every Texas itinerary. Why can't they just be like any other port and state and put a port sales tax on the purchase of any alcohol within their port/waters?

[ymi17]

Just got off the emerald in Houston and was shocked by this issue. I agree with the consensus- just risk the misdemeanor. It's a Texas law, so if you aren't consuming in Texas, it is an unconstitutional exercise of commerce powers that is prohibited by the U.S. constitution. Ignore the cash grab.

[dallen10]

Robtulipe I live in Texas and you have no idea how true your last sentence is.

 

Happy cruising.

 

Ditto!

[LSmith82463]

When we sailed out of Galveston last March, we specifically asked an officer/agent and he said, "you're leaving the state today, right?" We were. He told us we didn't need to stop, nor did we need to pay since we were leaving Texas.

 

 

The law change was effective 9/1/2014 I think.

[RDC1]

When we sailed out of Galveston last March, we specifically asked an officer/agent and he said, "you're leaving the state today, right?" We were. He told us we didn't need to stop, nor did we need to pay since we were leaving Texas.

 

No so.

 

There was a lot of debate about this (if non-residents, leaving the state the same day, had to pay under the law). So I wrote the program operations manager.

 

Here is the response:

 

Regarding your questions below: The personal importation tax applies to all persons that enter the state of Texas via a cruise terminal regardless of their residency or the amount of time spent within the state. The tax is applicable to all alcoholic beverages and tobacco that enters the state via a cruise terminal.

 

 

 

Thank you,

 

 

 

Karen Smithwick

 

Field Operations - Ports of Entry Director

[eweiss1979]

Just got off the emerald in Houston and was shocked by this issue. I agree with the consensus- just risk the misdemeanor. It's a Texas law, so if you aren't consuming in Texas, it is an unconstitutional exercise of commerce powers that is prohibited by the U.S. constitution. Ignore the cash grab.

What makes it unconstitutional? The state doesn't want you selling the liquor in its state without a permit. So they tax you upfront as you bring it into the State, to make sure that even if you did try to sell it to your family or friends before you left the State you aren't going to be turning a profit on it. They have been enforcing this tax on the Mexican tourists from the land ports for years and nobody was saying it was unconstitutional.

[ymi17]

The supremes have held that the 21st amendment applies to in state delivery of alcohol. I believe the state has no power to prevent a citizen of oklahoma from transporting goods from a duty free shop to a state with no such duty. it affects interstate commerce, and texas has no right to do so. It can tax imports bound for texas to its little heart's content.

[RDC1]

The supremes have held that the 21st amendment applies to in state delivery of alcohol. I believe the state has no power to prevent a citizen of oklahoma from transporting goods from a duty free shop to a state with no such duty. it affects interstate commerce, and texas has no right to do so. It can tax imports bound for texas to its little heart's content.

 

I believe that you would be correct if you had a shipment going from state A to state B and crossing Texas. In this case you have product that is entering the US in the state of Texas, in that case Texas laws on import would apply and not be a violation of interstate commerce, even if the product then leaves the state.

 

The following is from ttb.gov page on personal importation. Notice the need to follow state law on importation limits and taxes.

 

"As noted above, certain state, local, or CBP requirements may apply to personal importations. State laws, for example, may limit the amount of alcohol that may be brought into the state without a license. If you arrive in a state that has limitations on the amount of alcohol you may bring in without a license, that state law will be enforced by CBP, even though this may be more restrictive than federal regulations.

 

Some states prohibit the direct shipment of beverage alcohol products to individuals. We recommend that you check with the state government before you go abroad regarding their personal importation policies and additional state taxes that might apply. Individuals interested in importing alcohol for personal use should contact their State liquor control board."

 

 

Also when it comes to states and violations of Interstate Commerce that following statement tend to be the major driver. Since Texas applies equally to both residents and non-residents it does not violate the following

 

"This Court has long held that, in all but the narrowest circumstances, state laws violate the Commerce Clause if they mandate "differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter."

Edited February 9, 2015 by RDC1

[caribill]

If the onshore store is a true duty free store one must show their ship's card to get that duty free pricing.

 

Duty free shops are usually located in an area where the only civilians allowed are cruise passengers.

[PETE45]

As a resident of a state other than Texas I resent having to pay taxes on alcohol which I neither purchased nor consumed in the state. I simply went through the state with it. I can fly to New Orleans as easily as to Houston for my next cruise and leave my money for lodging, food, recreation and sales taxes in Louisiana. Even if Texas is not technically violating the US Constitution commerce clause they are violating it's intent. The purpose of the clause is to prevent each state from interfering with the commercial rights of the other states. The state of Texas is putting a tax on non-residents for simply passing through their state with goods they purchased elsewhere and are not going to consume, leave or sell in Texas. I will factor that distaste left with me by the State Texas into future vacation decisions. In my case I don't think Texas will be the beneficiary. If Texas wants my business, then don't treat me as a patsy.

[dmdiver]

We claimed our 2 liters of alcohol on our customs form, but they just sent us on. We were told that they don't pull everyone aside. They said that you still want to put it on your form, so that if they do pull you aside, it doesn't look like you're trying to hide anything. What we bought on the ship is not available in the US, so we were willing to pay the tax if need be. This was May of this year.

[dioxide45]

We claimed our 2 liters of alcohol on our customs form, but they just sent us on. We were told that they don't pull everyone aside. They said that you still want to put it on your form, so that if they do pull you aside, it doesn't look like you're trying to hide anything. What we bought on the ship is not available in the US, so we were willing to pay the tax if need be. This was May of this year.

 

Even if the alcohol is part of your duty free allowance, you are still to claim it on your customs declaration form. So you did what you were supposed to do.

[zdcatc12]

As a resident of a state other than Texas I resent having to pay taxes on alcohol which I neither purchased nor consumed in the state. I simply went through the state with it. I can fly to New Orleans as easily as to Houston for my next cruise and leave my money for lodging, food, recreation and sales taxes in Louisiana. Even if Texas is not technically violating the US Constitution commerce clause they are violating it's intent. The purpose of the clause is to prevent each state from interfering with the commercial rights of the other states. The state of Texas is putting a tax on non-residents for simply passing through their state with goods they purchased elsewhere and are not going to consume, leave or sell in Texas. I will factor that distaste left with me by the State Texas into future vacation decisions. In my case I don't think Texas will be the beneficiary. If Texas wants my business, then don't treat me as a patsy.

 

At least Texas doesn't charge sales tax on groceries or OTC medication like the great state of Oklahoma does!

[caribill]

We claimed our 2 liters of alcohol on our customs form, but they just sent us on. We were told that they don't pull everyone aside. They said that you still want to put it on your form, so that if they do pull you aside, it doesn't look like you're trying to hide anything. What we bought on the ship is not available in the US, so we were willing to pay the tax if need be. This was May of this year.

 

The customs form is given to US customs agents, not to the Texas folk collecting any Texas taxes.