Texas Alcohol Excise Tax for Cruisers

[robtulipe]

A warning to those who want to bring back duty free alcohol from a cruise, the only people, including those in transit out of the state or country, being asked to pay the $3.75 per quart Texas Excise tax were those it was obvious that they had alcohol.

There is no questioning about or x-rays/searches for alcohol in your luggage or carry on/off bags.

Just don't bring it off in the ship's or duty free store boxes or bags.

We just did B2B2B Navigator cruises and had alcohol in our bags for the flight out today and nothing was asked nor searches done for alcohol. Several friends carried off duty free boxes and were sent to the Excise tax table after custom/border services to paid this stupid tax, especially for those in transit out of the state. ;)

The state of Texas is going to hurt their cruise ports and jeopardized their tourism industry to collect a few dollars in liquor tax.

This is really pissing off large numbers of cruisers, especially those from those out of state who won't even be consuming their alcohol in Texas, from what we heard onboard.

The state of Texas spends millions of dollars promoting tourism and then are doing this. The Texas legislature must be made up of mostly idiots or fools, IMHO .:p

[zdcatc12]

This law has been on the books forever, just not strictly enforced. I hardly think it will affect the industry there, as Carnival just added a third ship out of Galveston.

[AndyCapn]

It doesn't sound that much different than coming into Canada with tobacco or a second bottle of alcohol: You pay the duties for the province in which you land, regardless of your final destination. (Similarly, an 18 year old from Quebec can buy alcohol there, but if they went through customs in Toronto their liquor would be confiscated because they're under the provinicial limit ... even if their final destination is in Quebec.)

 

Those complaining that they are "in transit" from the cruise port are simply mistaken. There's no secured passage to the airport. They're landing in Texas, they're subject to state law.

 

That said, only the most strident anti-tax protester is going to avoid Houston/Galveston over a $4 a bottle tax.

[robtulipe]

It doesn't sound that much different than coming into Canada with tobacco or a second bottle of alcohol: You pay the duties for the province in which you land, regardless of your final destination. (Similarly, an 18 year old from Quebec can buy alcohol there, but if they went through customs in Toronto their liquor would be confiscated because they're under the provinicial limit ... even if their final destination is in Quebec.)

 

Those complaining that they are "in transit" from the cruise port are simply mistaken. There's no secured passage to the airport. They're landing in Texas, they're subject to state law.

 

That said, only the most strident anti-tax protester is going to avoid Houston/Galveston over a $4 a bottle tax.

 

But I don't have to pay anything for duty free items I return to Canada with within my exception limit.

Why is then that one is told to indicate on their US customs and immigration forms that they are in transit when they are flying out of the US upon disembarkation? This simply means you are travelling through and not staying on in that location. We've done the secured passage where we were cleared by US customs at the ship in Ensenada, MX and were bused directly to the US border. There use to be a similar program in Vancouver for American returning immediately to US via YVR airport.

Cruises from Houston and Galveston have very limited itinerary possibility as it takes two sea days typically to get to the first port and there are basically only six ports to go to and only half are decent ones. There aren't many transport options to the ports other than ship's transfer or expensive taxis or limos. These cruises are often impacted by weather as an example fog delayed the sailing of the ships out of Bayport Houston for 24 hours at the start of our first recent Navigator B2B2B cruises but luckily we were able to sail out in spite of the poor weather. Now Texas is taxing liquor of tourists just passing through.

I know it will be very unlikely that we will be sailing out of Houston or Galveston again.

Edited February 3, 2015 by robtulipe

[zdcatc12]

Cruises from Houston and Galveston have very limited itinerary possibility as it takes two sea days typically to get to the first port and there are basically only six ports to go to and only half are decent ones. There aren't many transport options to the ports other than ship's transfer or expensive taxis or limos. These cruises are often impacted by weather as an example fog delayed the sailing of the ships out of Bayport Houston for 24 hours at the start of our first recent Navigator B2B2B cruises but luckily we were able to sail out in spite of the poor weather. Now Texas is taxing liquor of tourists just passing through.

I know it will be very unlikely that we will be sailing out of Houston or Galveston again.

 

Obviously none of these issues have affected any line, except maybe Disney since they didn't come back. Carnival actually put on a third ship out of Galveston. There are other ports with transportation issues also. Port Canaveral to MCO is the same distance as Houston to HOU. If people fly into IAH instead of HOU, that isn't the ports fault. Tampa and Jacksonville have just as many fog issues as Houston/Galveston.

 

You don't like the itineraries out of there, but you do like them enough to do a B2B? Talking out of both sides there.

[rvsullivan]

This law has been on the books for a long time. If you look around you will see that many States have the same law. Whether it's enforced or not is another story. Texas has been collecting this tax for a long time. They now have the resources to enforce it at cruise ports as well. If $3.50 per bottle is enough to cause some to go elsewhere, I guess that can't be helped. I know I pay it at least a couple of times per month and have for several years, and, it's still much cheaper for me to buy my alcohol and pay the tax then it is to buy it here.

There are other active posts on CC about this same topic. I don't bother smuggling for $3.50. Now, if the Federal Government catches you bringing in more than your allowed it does cost more, about $5-6 per bottle.

As an FYI though, Texas has been collecting this tax at the border for many years now and it hasn't hurt tourism at all. Here where I live in Texas, there are about 30-40% Canadians. They pay the tax every week to get a stockpile to take home in the spring to avoid the huge amount that alcohol costs in Canada!

Edited February 3, 2015 by rvsullivan

[roger001]

I am surprised that the effort to collect will equal the cost to try and do so. To me, it is just a super silly law that regardless of Texas right to do so, still is directly affecting an interstate commerce and tourism issue. And to emphasize this silliness, as I perceive silliness, is a very visual statement from Texas that was attached to my mini refridge the last day. A thumbnail is attached. It is the "IMPORTANT! DO NOT BREAK THIS SEAL", and then associated statement both glued to the refridge. It basically says yo may not use mini bar items until at least 10 pm after departure from Houston, or until leaving Texas waters. I just see this as a silly, silly "rule". I picture the ten gallon hat Texas sheriff wearing the six shooters, when I look at it. But.....Texas isn't the only ones. In Tennessee, although I'm in my 70s and look like I'm in my 90s, I MUST show my drivers license and make my date of birth plainly visible to store clerks before I'm allowed to purchase a beer. I once had a drivers license that had expired the week before. Couldn't buy the beer. So Texas, don't guess you're any worse than us for "silly".

[rvsullivan]

I am surprised that the effort to collect will equal the cost to try and do so. To me, it is just a super silly law that regardless of Texas right to do so, still is directly affecting an interstate commerce and tourism issue. And to emphasize this silliness, as I perceive silliness, is a very visual statement from Texas that was attached to my mini refridge the last day. A thumbnail is attached. It is the "IMPORTANT! DO NOT BREAK THIS SEAL", and then associated statement both glued to the refridge. It basically says yo may not use mini bar items until at least 10 pm after departure from Houston, or until leaving Texas waters. I just see this as a silly, silly "rule". I picture the ten gallon hat Texas sheriff wearing the six shooters, when I look at it. But.....Texas isn't the only ones. In Tennessee, although I'm in my 70s and look like I'm in my 90s, I MUST show my drivers license and make my date of birth plainly visible to store clerks before I'm allowed to purchase a beer. I once had a drivers license that had expired the week before. Couldn't buy the beer. So Texas, don't guess you're any worse than us for "silly".

 

 

When this came up earlier I started asking some questions of our local TABC (Texas Alcohol and Beverage Commission) about why NCL and not the other cruise lines. I was told that the others are resupplying the ships with Texas alcohol. NCL is not and can't sell it in Texas waters. Not sure what the legalities are, but perhaps it's an NCL issue since the other lines don't seem to be having a problem? Many states have some strange laws when it comes to demon alcohol.

[zdcatc12]

When this came up earlier I started asking some questions of our local TABC (Texas Alcohol and Beverage Commission) about why NCL and not the other cruise lines. I was told that the others are resupplying the ships with Texas alcohol. NCL is not and can't sell it in Texas waters. Not sure what the legalities are, but perhaps it's an NCL issue since the other lines don't seem to be having a problem? Many states have some strange laws when it comes to demon alcohol.

 

It is the same on Carnival. For their unlimited alcohol plan, you cannot buy it until after the first night of the cruise. The good thing about that is that they base their pricing on number of cruise days, so on a 5-night, even though you only buy the plan for four days, it is based on the 5-day pricing.

[jmele999]

When this came up earlier I started asking some questions of our local TABC (Texas Alcohol and Beverage Commission) about why NCL and not the other cruise lines. I was told that the others are resupplying the ships with Texas alcohol. NCL is not and can't sell it in Texas waters. Not sure what the legalities are, but perhaps it's an NCL issue since the other lines don't seem to be having a problem? Many states have some strange laws when it comes to demon alcohol.

 

The real question is how long does it really take to get out of Texas water. On our last cruise, we departed from Bayport at 4:00 pm and were near Galveston around 6:00 pm. Should the change the law to 8:00 pm?

[roger001]

It seems to me that all connecting passengers flying through DFW should also be required to declare if they have any taxable items in their connecting luggage, as they pass through the state. I don't exactly see any difference between them and a cruise ship passenger just passing through. In fact, why not stop all Interstate 40 cars entering Texas for declare/search and tax. But...I'm sure I just don't understand.

[zdcatc12]

It seems to me that all connecting passengers flying through DFW should also be required to declare if they have any taxable items in their connecting luggage, as they pass through the state. I don't exactly see any difference between them and a cruise ship passenger just passing through.

 

The same reason that when I changed planes in LHR, I didn't have to go through UK customs. You aren't actually entering the state, or country, just transiting. However, when you get on whatever transportation you use to get to the airport, you are actually traveling in the state.

[AndyCapn]

. I was told that the others are resupplying the ships with Texas alcohol. NCL is not and can't sell it in Texas waters. Not sure what the legalities are, but perhaps it's an NCL issue since the other lines don't seem to be having a problem?

 

This would explain one of the pictures I saw of a bar on Jewel having their liquor cabinet closed on embarkation day but having eight or ten bottles out in front. If those are bottles they bought in Texas and can legally serve them while still in Texas waters, they satisfy both the law and the customers who want booze (even though their choices are severely limited.)

[bmag60]

Actually on a Carnival cruise from Texas, if you are on a 5 day cruise, the "adult" beverage package is a 4 day package, and that's all you pay for. You don't pay for the 5th day. Been there, done that.