Sales tax in US ports

[reeinaz]

Are you charged applicable sales tax on drinks purchased with a drink package when docked in US ports? For example a cruise leaves from NYC and makes a stop in Orlando before going to Nassau. Do you get charged sales tax while docked in Orlando?

[BruceMuzz]

Some US States have opted to charge State Sales Tax on onboard purchases made while the ship is in port in that state. 

[Pyrate13]

Not sure as to your question but... there is no port in Orlando. The Atlantic is a good 50 miles or so East from Orlando. Never understood why cruise lines say they stop in Orlando.

[mom says]

If your beverage package was purchased before you entered that port on the ship, then no, you wouldn't be charged a sales tax  on drinks obtained with the beverage package.  If you don't have a beverage package, then sales tax may be charged,  depending on the port -Texas ports are one example.

[njhorseman]

22 minutes ago, mom says said:

If your beverage package was purchased before you entered that port on the ship, then no, you wouldn't be charged a sales tax  on drinks obtained with the beverage package.  If you don't have a beverage package, then sales tax may be charged,  depending on the port -Texas ports are one example.

This may be true in some states but not everywhere. For example if you're in New York you have to pay sales tax on the value of the drink even if you have a prepaid drink package . I've heard that some cruise lines will withhold  processing of the accounting records for drinks served in port until the ship leaves the state's waters in order to avoid having to charge sales tax, but I have not personally been on a cruise line that does it. 

[navybankerteacher]

2 hours ago, mom says said:

If your beverage package was purchased before you entered that port on the ship, then no, you wouldn't be charged a sales tax  on drinks obtained with the beverage package.  If you don't have a beverage package, then sales tax may be charged,  depending on the port -Texas ports are one example.

I think you are mistaken.  Cruise lines tend to "play ball" with the taxing authorities.

[mom says]

2 hours ago, navybankerteacher said:

I think you are mistaken.  Cruise lines tend to "play ball" with the taxing authorities.

I'm not saying the cruise lines wouldn't pay the sales taxes.  Of course they would pay what was owed.  And I've done a bit of googling,  and it seems that the beverage package passenger may or may not have to pay extra for any port sales taxes, depending on the cruise line.  RCCL states explicitly in the terms and conditions that sales taxes may be incurred in certain ports. Celebrity doesn't say that, but does say that the cost of the beverage package may vary depending on the ports. And Princess doesn't mention extra taxes at all. So some cruise lines,  at least, may be rolling this cost into the total beverage package cost.  

 

So I should amend my previous statement to "maybe".

Edited November 19, 2021 by mom says

[chengkp75]

4 hours ago, mom says said:

So some cruise lines,  at least, may be rolling this cost into the total beverage package cost. 

As NJhorseman says, it is not that the cruise line is "rolling the cost" into the package price, but they are not processing the bar POS registers (where the drink transactions are recorded) into the main ship's server, and the passenger's account, until after the ship leaves the port, thereby making the "transaction" occur outside the state.

[ontheweb]

46 minutes ago, chengkp75 said:

As NJhorseman says, it is not that the cruise line is "rolling the cost" into the package price, but they are not processing the bar POS registers (where the drink transactions are recorded) into the main ship's server, and the passenger's account, until after the ship leaves the port, thereby making the "transaction" occur outside the state.

Shh, or some states may realize this and go after the cruise lines to record the transactions in a timely manner. And you know they will pass the extra cost on rather than absorb it.

[MBP&O2/O]

“Not sure as to your question but... there is no port in Orlando. The Atlantic is a good 50 miles or so East from Orlando. Never understood why cruise lines say they stop in Orlando.”

A bit like London / Southampton or London / Dover. 🤪

[ontheweb]

2 hours ago, MBP&O2/O said:

“Not sure as to your question but... there is no port in Orlando. The Atlantic is a good 50 miles or so East from Orlando. Never understood why cruise lines say they stop in Orlando.”

A bit like London / Southampton or London / Dover. 🤪

Why stop at London as an example? There are also Rome, Florence, Athens, and I am sure several more that fit into that category.

[rkacruiser]

10 hours ago, ontheweb said:

Shh, or some states may realize this and go after the cruise lines to record the transactions in a timely manner

 

How could a State determine when a package was purchased?  

 

20 hours ago, mom says said:

If you don't have a beverage package, then sales tax may be charged,  depending on the port -Texas ports are one example.

 

I have had Florida sales tax added to my individual beverage purchases while the ship was docked in Port Everglades.  

[rkacruiser]

22 minutes ago, CHPURSER said:

Some Countries and States have been known to place plainclothes inspectors among the passengers to observe if proper Sales Taxes are being charged.

 

Not surprised to learn this.  The State of Ohio has Liquor Control Agents who have been known to be in liquor stores in Indiana and Kentucky that are near the Ohio and that State's border.  If they suspect an Ohioan is buying booze that is taxed at a lower level than Ohio, they will follow that person and then arrest them once they are back in Ohio.  

 

Thanks for your informative post.  I appreciate it.  

[Pyrate13]

11 hours ago, ontheweb said:

Why stop at London as an example? There are also Rome, Florence, Athens, and I am sure several more that fit into that category.

Doesn't make it correct.

[dobiemom]

I boarded the NCL Bliss in San Pedro CA this past Sunday. I have the drink pkg as one of my perks. I was charged tax on both my drinks at lunch (the waiter made sure I knew this). 

[sanger727]

It may depend on the cruise line; so you could get a better answe if you said which cruise line you are sailing. I can confirm the Norwegian does charge state tax on beverage package purchases when docked. I suspect it comes down to how they ring it up. I’ve had similar experiences at home with Groupon. You purchase a voucher that pays for the item 100%. Some businesses check you out by charging the transaction, adding tax, then deducting the Groupon value (so just have to pay tax). Other businesses ring it up at $0, since that’s what you owe after the voucher. Then there’s no tax on a $0 bill.

Edited November 20, 2021 by sanger727

[reeinaz]

This is a general question. I know tax is charged at the embarkation port at the beginning of the cruise. I was just curious if it's also charged at US ports of call along the way. If not, why not? What would be the difference?

[njhorseman]

31 minutes ago, reeinaz said:

This is a general question. I know tax is charged at the embarkation port at the beginning of the cruise. I was just curious if it's also charged at US ports of call along the way. If not, why not? What would be the difference?

It simply depends on the laws of the city and state where you're docked. Some require the collection of sales tax, some not.

[njhorseman]

10 hours ago, CarelessAndConfused said:

 

Yes, I'm not sure if this is new or something.  I've sailed on Princess without sales tax as recently as early October but when I sailed on Carnival in late October, I was hit with a sales tax.  I wonder if it was because I asked for glass with my beer???  I guess the $2 they charge for the glass wasn't enough.

It's not new, and has already been explained some cruise lines skirt the requirements by not processing the transactions until the ship is out of the state's jurisdiction. 

[sanger727]

1 hour ago, CarelessAndConfused said:

 

Just curious, were the differences in businesses that taxed or didn't tax the fact that you were buying goods as opposed to services?  I'm not sure what the sales tax laws are in your state but in CA, services are not usually taxed.  So if you bought a coupon for a yoga instructor or a golf coach, you wouldn't be taxed on that.  I just find it hard to believe that businesses would be that willy nilly on sales tax collection, especially considering they are "ringing it up" and the registers have to be programmed.  

 

I’ve not noticed any difference in the goods/services of the business. I usually purchase spa/salon services; which we do pay tax on. Some ring it up as a zero purchase and charge no tax; and some ring it as a purchase, charge tax, and then apply the voucher. 

[reeinaz]

I just wanted to follow-up on this. 

So I have 2 cruises with US stops to compare now. I did a NYC to FL to Bahamas to FL. I was charged sales tax on my drinks in NYC and both FL ports (Miami and Port Canaveral and yeah, nowhere near Orlando!)

I cruised NYC to RI, to Maine, to Canada. I was charged sales tax on my drinks in NYC but not while docked in RI or either port in Maine. And yes, I had drink packages on both cruises.

So yes, it seems it varies based on the state.

[donaldsc]

On 11/19/2021 at 5:46 PM, Pyrate13 said:

Doesn't make it correct.

 

But I bet it does fool lots of geographically challenged cruisers who think that London, Rome, Florence and Berlin are directly on the ocean.  Just walk out of the Vatican and you are on a beach.  

 

DON

[ldubs]

On 11/18/2021 at 3:47 PM, Pyrate13 said:

Not sure as to your question but... there is no port in Orlando. The Atlantic is a good 50 miles or so East from Orlando. Never understood why cruise lines say they stop in Orlando.

 

I'm pretty sure the OP knows this.   As already said, it is just commonly done.  Not something to get too worked up about, IMO.  

[ldubs]

12 minutes ago, donaldsc said:

 

But I bet it does fool lots of geographically challenged cruisers who think that London, Rome, Florence and Berlin are directly on the ocean.  Just walk out of the Vatican and you are on a beach.  

 

DON

 

I think most figure it out fairly quickly.  I can never remember exactly where Civitavecchia is except of course it is generally west of Rome (can't spell it half the time either).       

 

How about major cruise destination cities on the ocean that have distant cruise ports?  I can think of one major one right away -- Venice.  

[6rugrats]

On 11/19/2021 at 5:13 PM, rkacruiser said:

 

Not surprised to learn this.  The State of Ohio has Liquor Control Agents who have been known to be in liquor stores in Indiana and Kentucky that are near the Ohio and that State's border.  If they suspect an Ohioan is buying booze that is taxed at a lower level than Ohio, they will follow that person and then arrest them once they are back in Ohio.  

 

 

Seems pretty drastic to arrest someone.

Edited November 18, 2022 by 6rugrats