Unlimited Beverage Package Questions

[CrusinCyndi]

In the US, the $14.22 per day is paid before you board.

 

I just signed up for it and paid the $14.22 per person per day tax. Which is still a bargain compared to $70 per person a day..The charge was added into the final cost of the cruise on my TA's billing statement and also on the reservation/confirmation from NCL

[LrgPizza]

I just signed up for it and paid the $14.22 per person per day tax. Which is still a bargain compared to $70 per person a day..The charge was added into the final cost of the cruise on my TA's billing statement and also on the reservation/confirmation from NCL

It is NOT tax. It is 18% gratuity.

[St.Thomas Bride]

Can anyone elaborate then on the taxes in US ports when you have the UBP. When you order drinks when in these ports you pay taxes (even though you have the drink package?)

[Two Wheels Only]

The charge was added into the final cost of the cruise on my TA's billing statement and also on the reservation/confirmation from NCL

Correct. The person who asked the question thought that $14.22 per day would be deducted from their on-board account in the same way that the DSC is usually deducted. That is not the case with the UBP promo.

[Two Wheels Only]

Can anyone elaborate then on the taxes in US ports when you have the UBP. When you order drinks when in these ports you pay taxes (even though you have the drink package?)

Yes, you are likely to be charged state tax while in port and for a brief time after leaving port. The tax is dependent on which state you are located. If you have a $10 drink, for ex. the $10 is covered by the UBP, you've already paid the 18% on that drink but you will be charged the tax (70 cents if tax is 7%) on your on-board account.

[BunnieBear]

Yes, you are likely to be charged state tax while in port and for a brief time after leaving port. The tax is dependent on which state you are located. If you have a $10 drink, for ex. the $10 is covered by the UBP, you've already paid the 18% on that drink but you will be charged the tax (70 cents if tax is 7%) on your on-board account.

Is this true of Seattle and Alaska?

 

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[phissy]

Is this true of Seattle and Alaska?

 

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True for Seattle.

[POA1]

Yes, you are likely to be charged state tax while in port and for a brief time after leaving port. The tax is dependent on which state you are located. If you have a $10 drink, for ex. the $10 is covered by the UBP, you've already paid the 18% on that drink but you will be charged the tax (70 cents if tax is 7%) on your on-board account.

 

This is a unique situation with respect to NCL. None of Carnival's brands charge tax on their beverage packages beverages in Florida ports. They do, however, charge a tax on a la carte beverages purchased outside of packages and alcohol delivered to the stateroom prior to departure.

 

Before you start to argue with me about this, please understand how Florida collects tax on cruise ship beverage and cigarette sales taxes. If you think it's based on actual sales, it's not. Here's the language from the 2016 Florida Tax Agreement:

 

Cruise Lines

 

Cruise Lines must pay beverage tax and cigarette tax for products sold to passengers while in Florida ports and while the ship is in Florida waters. Due to administrative problems associated with determining if the sale is in Florida or international waters, the bill replaces the beverage and tobacco taxes that cruise lines currently pay with a new tax based on ship capacity and the number of times a ship embarks from Florida rather than volume of alcohol or tobacco sold at port.

 

The line is paying a flat fee for the ship, based on passenger capacity. It was part of Florida HB 7099. The explanation above if from Florida Tax Watch (http://www.floridataxwatch.org/)

 

 

It passed the Florida Senate 35-4; and House 105-9. It was signed into law by the governor and became effective 7/1/2016.

 

If you like reading state laws on sate websites, here's the link:

 

https://www.flsenate.gov/Session/Bill/2016/7099/

I don't have any information on the other states, but this is how it's handled in Florida.

Edited August 15, 2017 by POA1

[POA1]

Is this true of Seattle and Alaska?

 

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Alaska's assembly passed a law exempting cruise ships from sales tax earlier this year:

 

http://juneauempire.com/local/2017-03-07/assembly-passes-ordinance-exempt-sales-taxes-cruise-ships

 

That takes care of FL & AK. Somebody else can do New York. :D

[Two Wheels Only]

That takes care of FL & AK. Somebody else can do New York. :D

Is a few pennies per dollar really worth the effort?:confused:

[rgruenhaus]

This is a unique situation with respect to NCL. None of Carnival's brands charge tax on their beverage packages beverages in Florida ports. They do, however, charge a tax on a la carte beverages purchased outside of packages and alcohol delivered to the stateroom prior to departure.

 

Before you start to argue with me about this, please understand how Florida collects tax on cruise ship beverage and cigarette sales taxes. If you think it's based on actual sales, it's not. Here's the language from the 2016 Florida Tax Agreement:

 

Cruise Lines

 

Cruise Lines must pay beverage tax and cigarette tax for products sold to passengers while in Florida ports and while the ship is in Florida waters. Due to administrative problems associated with determining if the sale is in Florida or international waters, the bill replaces the beverage and tobacco taxes that cruise lines currently pay with a new tax based on ship capacity and the number of times a ship embarks from Florida rather than volume of alcohol or tobacco sold at port.

 

The line is paying a flat fee for the ship, based on passenger capacity. It was part of Florida HB 7099. The explanation above if from Florida Tax Watch (http://www.floridataxwatch.org/)

 

 

It passed the Florida Senate 35-4; and House 105-9. It was signed into law by the governor and became effective 7/1/2016.

 

If you like reading state laws on sate websites, here's the link:

 

https://www.flsenate.gov/Session/Bill/2016/7099/

I don't have any information on the other states, but this is how it's handled in Florida.

Correct! I always have the UBP on NCL ships and when the Breakaway was in Port Canaveral I stayed onboard and drank alcohol and never saw any added tax on my account. That taxing system is like how Cable companies charge sports bars for sporting events showing on the big screen in the bar. Rather than counting actual customers they use the bar occupant capacity stated for fire safety.

 

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[POA1]

Is a few pennies per dollar really worth the effort?:confused:

 

I would think that a 7% rake on the retail value of all beverage package drinks dispensed while a ship is in a Florida port must be worth something to them. It's a business decision that they've made. They may do it while their competitors don't because they have such a high percentage of people on beverage packages and they don't want to eat the flat fee.

 

 

It's something we have to pay. Be that as it may, it's not a regular 7% sales tax like a land-based business would pay, because cruise ships don't pay that under Florida law. I was just trying to be helpful by pointing out the actual Florida law. I've seen a lot of posts where people seem to think that the 6% FL State or 7% for Miami-Dade County sales taxes apply to drinks sold in port.

[Two Wheels Only]

I would think that a 7% rake on the retail value of all beverage package drinks dispensed while a ship is in a Florida port must be worth something to them.

No, I mean is it worth it for us (the guests) to worry about being charged a few cents vs. not being charged while at sea?

 

People are spending hundreds (usually thousands) to cruise but for some strange reason, people continue to worry about "Will I be charged 75 cents while in port? OMG!!...so much nickel and diming....". I don't get it. :o

[POA1]

No, I mean is it worth it for us (the guests) to worry about being charged a few cents vs. not being charged while at sea?

 

People are spending hundreds (usually thousands) to cruise but for some strange reason, people continue to worry about "Will I be charged 75 cents while in port? OMG!!...so much nickel and diming....". I don't get it. :o

I knew what you meant. The "tax" isn't going to stop us, or most rational people from using our beverage packages and paying the fee.

 

That's the genius of the scheme. Most folks are going to assume that the money being collected is going to Florida and Miami-Dade County because of Florida sales tax on each drink served in port. The odds of people knowing about the way beverages are taxed on cruise ships in Florida are pretty small. I'm sure that you would have sworn that there was sales tax on each drink earlier today. It's only nickels and dimes to each individual guest, but multiply that by thousands of people week after week and you're looking at serious money.

[Two Wheels Only]

Most folks are going to assume that the money being collected is going to Florida and Miami-Dade County because of Florida sales tax on each drink served in port.

Most people simply won't care just like they don't care about how many cents per gallon of gas goes to taxes.

 

 

The odds of people knowing about the way beverages are taxed on cruise ships in Florida are pretty small. I'm sure that you would have sworn that there was sales tax on each drink earlier today. It's only nickels and dimes to each individual guest, but multiply that by thousands of people week after week and you're looking at serious money.

Whether flat fee or per drink, whatever NCL gives to FL (or any other state) is paid by the passenger. If NCL raised cruise fare by $10 but waived the "state tax" on drinks in port, guests wouldn't care, either. The people who freak out at the thought of $1.35 being deducted from their on-board account only care because they "see" it. :o

[jjh9]

:cool:

I am new to NCL and the last time I cruised (about 12 years ago) there was no UBP at all. We got the UBP included in our Panama Canal cruise for 11/2018, but I am not clear on what is included or not.

 

1. I think I understand that all cocktails over $15.00 will have an upcharge and you pay the price difference plus gratuity on the difference, is this correct?

 

2. Is soda, speciality coffee and bottled water included in the UBP?

 

3. It does not cover beverages delivered to your room by room service, correct?

 

4. Are alcoholic cocktails included in the UBP in ALL restaurants: dining room, speciality restaurants, pool side?

 

Any help you can provide will be appreciated, trying to get a full understanding of this package.

We just booked a 11 night cruise and the agent told me if I got the UBP I would need to pay 18% up front which would be a total of $304 per cabin of 2

[hawk/hornfan]

:cool:

We just booked a 11 night cruise and the agent told me if I got the UBP I would need to pay 18% up front which would be a total of $304 per cabin of 2

Which equals about $14 a day. so about one drink.that is a bargain.

[bobg529]

Alaska's assembly passed a law exempting cruise ships from sales tax earlier this year:

 

http://juneauempire.com/local/2017-03-07/assembly-passes-ordinance-exempt-sales-taxes-cruise-ships

 

That takes care of FL & AK. Somebody else can do New York. :D

 

 

Are you kidding me? New York even taxes you to pass wind in your own bathroom. :')

[POA1]

Most people simply won't care just like they don't care about how many cents per gallon of gas goes to taxes.

 

 

 

Whether flat fee or per drink, whatever NCL gives to FL (or any other state) is paid by the passenger. If NCL raised cruise fare by $10 but waived the "state tax" on drinks in port, guests wouldn't care, either. The people who freak out at the thought of $1.35 being deducted from their on-board account only care because they "see" it. :o

Let me try this one last time, using a real Florida example. You have dinner in a Florida restaurant that advertises a free bottle of wine when you purchase dinner for two, consisting of one appetizer, soup or salad, and one entrée per person.

 

The wine lists for $50.00. Your food total comes to $125.00 for the two of you.

 

What is your tax basis? Is it the $125.00 for the food? Is it $50.00 for the wine? Is it $175.00 for the combined value of the food and wine?

 

I'll give you a hint. It's not, "Who cares? I'm getting free wine."

 

A second hint: It's not, "They can charge whatever they want based on their total tax bill."

 

If you get stuck, let me know and I'll upload a PDF from the Florida Department of Revenue.

 

Good luck!

[KarlChilders]

POA1, so the line pays Florida a flat tax based upon the number of passengers it hauls out of Fla. If they ate it it would be a decrease in revenue. The line would then have 2 options if it did not want to suffer the revenue decrease. Split that tax evenly between all passengers by an across the board increase or what I would guess they did which would be to take the number of drinks sold on average while in port, divide the tax paid by the number of drinks and then add that amount to each drink sold while in port. Seems a fair way to do it to me.

[Two Wheels Only]

I'll give you a hint. It's not, "Who cares? I'm getting free wine."

It's "I don't care if I am satisfied with everything that I received for the total that I paid". If dinner and wine was worth whatever I paid, I don't care what happens to my money once it leaves my pocket.

 

If I gladly pay $1,000 for a cruise, I don't care if FDR keeps $900 and gives $100 to the crew or if FDR keeps $1 and gives $999 to the crew. It's still $1K out of my pocket. It's the same with taxes, port fees, DSC, etc. I look at the TOTAL and don't care about what goes where and to whom.

[wdsted]

A suggestion for those of you who are upset about paying $.63 in tax per drink while in port: Complain loudly enough to be overheard. I'm certain that there are many people like me who would reimburse you on the spot to not have to listen to the pettiness.

 

 

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[POA1]

It's "I don't care if I am satisfied with everything that I received for the total that I paid". If dinner and wine was worth whatever I paid, I don't care what happens to my money once it leaves my pocket.

 

If I gladly pay $1,000 for a cruise, I don't care if FDR keeps $900 and gives $100 to the crew or if FDR keeps $1 and gives $999 to the crew. It's still $1K out of my pocket. It's the same with taxes, port fees, DSC, etc. I look at the TOTAL and don't care about what goes where and to whom.

 

A lot of people would have thought that the correct answer was a number. Because it is.

 

The correct answer is that the tax basis is the cost of the food; the tax is based on the $125.00. Some people may have thought that the tax basis was the combined total of $175. That's incorrect, because in Florida, the "free" good isn't taxed.

 

 

It would be the same if you shopped for pants and the store had a sale that read, "Buy one pair of slacks and get a second pair of the same or lesser value for free." Your tax basis would be the more expensive pair of pants only. (If the two pairs were the same price, you'd simply pay tax on one of them.)

[Gampy1967]

The terms and conditions of the Ultimate Beverage Package states that it is limited to one beverage per person per purchase. Does that mean that if I walk up to the bar and want to get a drink for my wife and myself I will either need both cards or they will have to run my card twice (once for each drink) rather than simply provide me with both drinks in a single purchase (assuming they are under $15 each and no charge)? Also does that mean that I can't order drinks with my UBP from a waiter at the pool?

[KeithJenner]

The terms and conditions of the Ultimate Beverage Package states that it is limited to one beverage per person per purchase. Does that mean that if I walk up to the bar and want to get a drink for my wife and myself I will either need both cards or they will have to run my card twice (once for each drink) rather than simply provide me with both drinks in a single purchase (assuming they are under $15 each and no charge)? Also does that mean that I can't order drinks with my UBP from a waiter at the pool?

 

 

 

In practice, you can almost always get two drinks if you have both cards. Sometimes they don't even require both cards, especially if the person serving you knows you.

 

We often pick up a couple of drinks at a time, even when we are by ourselves, and always make sure that we have both cards with us. Sometimes they ask to see the second one, sometimes not.

 

No problem getting served by the waiters at the pool, or any bar.