Florida Tax On Beverage Package

[JEM4205]

We plan to use some of our OBC to purchase one of the beverage packages on our upcoming cruise on the Sky Princess.

 

From a posting here on Cruise Critic, I discovered that Florida tax is added to a package purchased while the ship is in port.

Can this be avoided by waiting to purchase the package after the ship leaves the port, if so, how long is the package offered? 

[Colo Cruiser]

On the Crown in Oct it was being charged for a few hours after leaving PE.

[voljeep]

3 minutes ago, Colo Cruiser said:

On the Crown in Oct it was being charged for a few hours after leaving PE.

and yet on our Regal cruise,  March 2018, we had a nice amount of OBC from a move-over, I got the PBP upon boarding, and the rep stated that would hold the 'ticket' until 'at sea' so no FL sales tax would be charged … and it wasn't … and I was able to use the PBP immediately without problems ...

[Colo Cruiser]

1 minute ago, voljeep said:

and yet on our Regal cruise,  March 2018, we had a nice amount of OBC from a move-over, I got the PBP upon boarding, and the rep stated that would hold the 'ticket' until 'at sea' so no FL sales tax would be charged … and it wasn't … and I was able to use the PBP immediately without problems ...

Yeah I am thinking that "they" caught onto that as "they" were losing a lot of revenue.

[voljeep]

42 minutes ago, Colo Cruiser said:

Yeah I am thinking that "they" caught onto that as "they" were losing a lot of revenue.

yep, the IRS is a piece of cake compared to dealing with the Florida Dept of Revenue ...

 

[Cruise Raider]

We were told that the packages, when purchased in port, were not to include these taxes.  I was charged tax on the corkage fee, however, on a bottle of wine that I took to the dining room prior to disembarkation.  It was not a big deal but on a beverage package, yowsa, that would be a chunk of change to add on for no extra value.  

[JEM4205]

Florida State sales tax 6% + Port Everglades local tax= 7% Correct?☹️

 

Not as bad as I thought.

Edited January 5, 2020 by JEM4205

[kywildcatfanone]

1 hour ago, JEM4205 said:

Can this be avoided by waiting to purchase the package after the ship leaves the port, if so, how long is the package offered? 

You can purchase any day of the cruise but it will be for the entirety of the cruise from that day onward.

[skynight]

Agree with others regarding the tax. Our past experience on the purchase of a soda package at one of the tables set up around the ship was that a hand written sales slip was prepared. The transaction was then processed after the ship left port. No sales tax.  We have no recent experience with the Premier Beverage Package.

Want to point out that you can't designate part of your OBC to be used for any onboard purchase. Any purchases, including the beverage package, are charged to your on board account and will net against any credit balance (OBC). If the purchase is more than your credit balance then the entire credit balance will be used in the transaction.

[bemis12]

1 hour ago, skynight said:

Agree with others regarding the tax. Our past experience on the purchase of a soda package at one of the tables set up around the ship was that a hand written sales slip was prepared. The transaction was then processed after the ship left port. No sales tax. 

 

I can see why the Florida Dept of Revenue would be unhappy.  That's fraud.

[Cruise Raider]

44 minutes ago, bemis12 said:

 

I can see why the Florida Dept of Revenue would be unhappy.  That's fraud.

 

How so?  The majority of the package is consumed outside of the port limits.  

You can also  purchase it ahead of time and they wouldn't get any revenue from that.  There may be an agreement about package sales that is unknown.  

 

[bemis12]

Because sales tax is collected where something is sold, not where it is consumed.

 

And making a sale but pretending you didn’t seems like fraud, doesn’t it?

[hel0013]

3 hours ago, kywildcatfanone said:

You can purchase any day of the cruise but it will be for the entirety of the cruise from that day onward.

 

How so?

 

According to their terms & conditions the PBP can be purchased onboard on embarkation day but NOT after embarkation day.

[Cruise Raider]

33 minutes ago, bemis12 said:

Because sales tax is collected where something is sold, not where it is consumed.

 

And making a sale but pretending you didn’t seems like fraud, doesn’t it?

 

Not to me because you have the option to purchase it ahead of time or afterwards.  But, hey, I don't know their laws ... 

[Colo Cruiser]

38 minutes ago, Cruise Raider said:

 

How so?  The majority of the package is consumed outside of the port limits.  

You can also  purchase it ahead of time and they wouldn't get any revenue from that.  There may be an agreement about package sales that is unknown.  

 

The "act" of the sale.

Whether it's used or not is moot.

[Cruise Raider]

Just now, Colo Cruiser said:

The "act" of the sale.

Whether it's used or not is moot.

 

Well, they don't charge port taxes on it .... so, not my not my circus, not my monkey.  

 

[Colo Cruiser]

3 minutes ago, hel0013 said:

 

How so?

 

According to their terms & conditions the PBP can be purchased onboard on embarkation day but NOT after embarkation day.

Correct.

It is available the first day and sometimes the second but always full price and never pro-rated.

[donaldsc]

3 hours ago, bemis12 said:

 

I can see why the Florida Dept of Revenue would be unhappy.  That's fraud.

 

It is Florida.  The whole state is a fraud.  How would they notice.

 

DON

[brisalta]

3 hours ago, bemis12 said:

 

I can see why the Florida Dept of Revenue would be unhappy.  That's fraud.

 

I do not understand how they get to charge ales tax as the ship is not even registered in the USA and is considered foreign territory.

[Yehootu]

And what happens to the "hanging chads" on those hand bills?

[1Gizmo]

Cruise Raider:  ignorance of the law is no excuse.

Brista: most states charge a sales tax while the ship is In port. As well as foreign ports like Spain.

Yehoofa: Hanging chads are only valid in Palm Beach County.

Edited January 6, 2020 by 1Gizmo
add a word

[surmy555]

In my experience you are not charged sales tax on the package but in ports with sales tax like Florida you are charged sales tax on the drinks you consume. If you consume a $10 drink with the package assuming a 7% sales tax rate your sign and sail account is charged 70 cents to cover the sales tax on that drink. If you don't have the package you are charged the $10 drink price, gratuity and the 70 cents of sales tax 

[Cruise Raider]

Regardless of all the accusations and presumptions on this thread, it really comes down to the way Princess conducts business in this situation.  Might there be a provision in place that outlines this?  Does anyone know for sure?  I've been told by Princess that they don't charge taxes on the package when purchased onboard, even while in port.  And, like I said, I've never been charged a state tax when consuming a beverage while in port when I had the package on any cruise line.  Whether or not it's ignorance of the law, I just don't care because I'm paying cruise line to handle that appropriately.  I have paid the tax when purchasing any drinks without the package, including corkage on a bottle of wine I took to the dining room.    

 

And yes, you can purchase the package after you are the obligatory 3 or 6 miles out ... or however many miles out you need to be ... just as long as it is on embarkation day (according to the T&C regarding the beverage package posted above).  Other cruise lines have different policies on this .... they will prorate it for the days left on your cruise as long as you sign up for it with a required number of days left on your sailing.  

 

[Redwing55]

Not sure on the most recent policy... and even more so with a Medallion class, but in the past, if one purchased a soda package from a crew staffed TABLE.. not bar, it didn't get charged the tax.  I think it's because the transaction was done on paper slips and entered after ship left port.  Now, if one purchased it at the bar, it did show the tax.  

[ALWAYS CRUZIN]

On 1/5/2020 at 2:54 PM, JEM4205 said:

We plan to use some of our OBC to purchase one of the beverage packages on our upcoming cruise on the Sky Princess.

 

From a posting here on Cruise Critic, I discovered that Florida tax is added to a package purchased while the ship is in port.

Can this be avoided by waiting to purchase the package after the ship leaves the port, if so, how long is the package offered? 

I purchase the soda package. Not charged any tax. I am charged the tax when I order a drink while in a US port and within the 3 mile limit. Once the casino opens up no more sales tax.