7% Fort Lauderdale sales tax charge on every drink purchase for entire cruise

[wesport]

Currently on the Regal. For this whole five day cruise you will be charged 7 % on top of the 18% gratuity for drinks. I highly recommend the drink package. When I called front desk they said it will be charged for the entire cruise with no explanation. Not a large amount , but just a heads up. 

[Hlitner]

2 minutes ago, wesport said:

Currently on the Regal. For this whole five day cruise you will be charged 7 % on top of the 18% gratuity for drinks. I highly recommend the drink package. When I called front desk they said it will be charged for the entire cruise with no explanation. Not a large amount , but just a heads up. 

What am I missing here?  I believe that 7% is Florida State Sales Tax.  While they are required to collect that when in port (and I think also for the first few miles when leaving port) it would seem to make no sense that it is being charged when in International waters.  

 

Hank

[Steelers36]

5 minutes ago, wesport said:

Currently on the Regal. For this whole five day cruise you will be charged 7 % on top of the 18% gratuity for drinks. I highly recommend the drink package. When I called front desk they said it will be charged for the entire cruise with no explanation. Not a large amount , but just a heads up. 

 

I have NEVER heard of this before.  Makes no sense out of the blue.  There were no reports of State taxes being charged from the early West Coast departures.  How can this happen once the ship is in international waters, or in another country?  FL State Tax should not be applicable.

 

[Steelers36]

1 minute ago, Hlitner said:

What am I missing here?  I believe that 7% is Florida State Sales Tax.  While they are required to collect that when in port (and I think also for the first few miles when leaving port) it would seem to make no sense that it is being charged when in International waters.  

 

Hank

And I think they always got around that tax by not charging folios until exited FL waters.

 

[croozer]

13 minutes ago, wesport said:

Currently on the Regal. For this whole five day cruise you will be charged 7 % on top of the 18% gratuity for drinks. I highly recommend the drink package. When I called front desk they said it will be charged for the entire cruise with no explanation. Not a large amount , but just a heads up. 

Is it possible someone at the front desk was mistaken or misunderstood about the tax?  I've paid the tax while we were close to shore but once we were far enough away in international waters there was no surcharge.

[wesport]

We are on day two and still being charged. Will check tomorrow. I have always been charged that when in port in Fort Lauderdale, but not sure what gives. 

[Hlitner]

Just had a crazy thought about the OP's post.   What happens to folks who purchase a Sanctuary Package (which can only be done onboard) as soon as they board (which is often necessary since it is first come first serve)?  7% of that price is real money!

 

Hank

[nocl]

1 hour ago, Hlitner said:

What am I missing here?  I believe that 7% is Florida State Sales Tax.  While they are required to collect that when in port (and I think also for the first few miles when leaving port) it would seem to make no sense that it is being charged when in International waters.  

 

Hank

My experience has been the same, that it is only charged while in port.  One issue is that if you get on board ship and buy anything, such as drink packages, spa packages, etc. (even if the service is used after the ship leaves port) before the ship leaves port I have seen the sales tax applied to the cost of the package.

Edited November 21, 2021 by nocl

[nocl]

59 minutes ago, Steelers36 said:

And I think they always got around that tax by not charging folios until exited FL waters.

 

I have always seen it charged by time of purchase.  If a business were to base it upon the time it is added to the folios that would be a violation of law and would land them in a lot of hot water with the states tax agency.

[Steelers36]

9 minutes ago, nocl said:

I have always seen it charged by time of purchase.  If a business were to base it upon the time it is added to the folios that would be a violation of law and would land them in a lot of hot water with the states tax agency.

I should not have used the word "always".  IDK if I was charged extra tax for a pre-sailaway beverage on deck.  I guess I didn't check the calculation.  But I think we can agree it didn't happen once we left US waters behind.

[brisalta]

16 minutes ago, nocl said:

I have always seen it charged by time of purchase.  If a business were to base it upon the time it is added to the folios that would be a violation of law and would land them in a lot of hot water with the states tax agency.

 

I have never understood how they manage to charge sales tax in the first place as all the ships involved are not US registered and thus considered foreign territory.

[nocl]

20 minutes ago, brisalta said:

 

I have never understood how they manage to charge sales tax in the first place as all the ships involved are not US registered and thus considered foreign territory.

Certain ports/states tax law requires sales tax on ship sales while in port.  Florida and New York are two places where I have seen it.  The ships are not considered foreign territory while they are in port.

[Steelers36]

1 hour ago, Hlitner said:

Just had a crazy thought about the OP's post.   What happens to folks who purchase a Sanctuary Package (which can only be done onboard) as soon as they board (which is often necessary since it is first come first serve)?  7% of that price is real money!

 

Hank

We used to book Sanctuary within minutes after boarding began in PE and never was charged any tax.  They wrote up a chit and likely only posted overnight once turned into Purser's Office.

Edited November 21, 2021 by Steelers36

[chengkp75]

7 hours ago, brisalta said:

 

I have never understood how they manage to charge sales tax in the first place as all the ships involved are not US registered and thus considered foreign territory.

It is not black and white.  When a foreign ship is in a US port, there is an overlap of jurisdiction between the "flag state" and the "port state".  The common application of international law is that the "port state" laws do not apply on the ship, as long as the "security and well being" of the port state are not harmed.  But, selling a drink on the ship is considered to be "commerce", and commerce in the port is under the "port state's" jurisdiction.  Therefore, the port state can determine whether or not to enforce the sales tax on the ship.  Commerce, whether it is done between the ship and an individual on the ship, or between the ship and a vendor ashore, is all considered to be "external" to the ship, just like drug enforcement, customs, environmental regulations, etc.  Commerce, being external to the ship is why the ADA partially applies to ships, since they are providing public accommodations.

[chengkp75]

7 hours ago, nocl said:

Certain ports/states tax law requires sales tax on ship sales while in port.  Florida and New York are two places where I have seen it.  The ships are not considered foreign territory while they are in port.

Yes, and no.  As noted above, there is overlap in jurisdiction, so while the ship is still foreign, it must meet "port state" laws in some circumstances, and not meet them in others.

[wesport]

8 hours ago, Hlitner said:

Just had a crazy thought about the OP's post.   What happens to folks who purchase a Sanctuary Package (which can only be done onboard) as soon as they board (which is often necessary since it is first come first serve)?  7% of that price is real money!

 

Hank

So far we have only had it charged on individual drinks. We did not have the drink package included. The second time I called guest services, the person could not answer the question and said he would get back to me today. 

[geoherb]

On the Majestic this summer sailing from Seattle to Alaska, I got charged sales tax for the drink I ordered the first afternoon. My later drink purchases were not charged sales tax even when the ship was docked in Alaska. (P.S. I just checked and discovered Alaska does not have a state sales tax, but it allows municipalities to levy them. Juneau and Ketchikan have them, but Skagway does not.)

 

Edited November 21, 2021 by geoherb

[skynight]

14 minutes ago, wesport said:

So far we have only had it charged on individual drinks. We did not have the drink package included. The second time I called guest services, the person could not answer the question and said he would get back to me today. 

I would ask passenger services to check with the home office. Collecting of FL State sales tax outside of FL makes no sense.

[pms4104]

10 hours ago, wesport said:

We are on day two and still being charged. Will check tomorrow. I have always been charged that when in port in Fort Lauderdale, but not sure what gives. 

Someone misunderstood the policy ... and PSD people get stars for blind obedience ...

 

There's always the Chat function on the Princess site to verify or negate this craziness ... 

 

Charging FL sales tax for the entire sailing makes no sense ...

 

Unless it's a VR cruise that never leaves FL waters.

[isosika]

I'm curious about the tax if you paid the Princess Plus fare.  You aren't really "buying" the drink package but simply paying a higher cruise fare.  A "free" drink package is a bonus that you did not purchase.  Does FL (and others) sales tax apply?

[JF - retired RRT]

9 hours ago, nocl said:

Certain ports/states tax law requires sales tax on ship sales while in port.  Florida and New York are two places where I have seen it.  The ships are not considered foreign territory while they are in port.

Texas does it, too. Altho' not a concern for Princess cruisers...anymore.

[kiwimum]

Add California to the list of states collecting sales tax In individual beverages when in port.

[pms4104]

Just now, kiwimum said:

Add California to the list of states collecting sales tax In individual beverages when in port.

I get the "in port" ... but for the entire cruise?

 

Curious to learn if this entire cruise thing applies only to Regal, only to Princess ... or to ALL FL sailings?

 

Also interesting this is first mention of this 7% tax ex FL.

[Outerdog]

45 minutes ago, pms4104 said:

Curious to learn if this entire cruise thing applies only to Regal, only to Princess ... or to ALL FL sailings?

 

Probably best to first confirm that this "tax" is being applied for the entire cruise in the first place. As stated above, it's entirely likely that the PSD rep was confused/wrong about it. I could easily believe that they confused the auto-grat with the tax when OP asked. 

[Bgwest]

14 hours ago, wesport said:

We are on day two and still being charged. Will check tomorrow. I have always been charged that when in port in Fort Lauderdale, but not sure what gives. 

Are these charges showing up daily on your stateroom account folio?