Press Release: Texas to begin Collecting Taxes on Alcohol at Seaports

For those, such as myself, who cruise out of Galveston:

The direct link to this release is located here: http://www.tabc.state.tx.us/home/pre...3/20131220.asp

TABC to begin collecting taxes at Texas seaports January 2014.

FOR IMMEDIATE RELEASE: December 20, 2013

The Texas Alcoholic Beverage Commission (TABC) will begin collecting personal importation taxes on alcohol and cigarettes from passengers returning from cruises in Galveston in 2014.

On January 4, 2014, cruise travelers disembarking out of the Port of Galveston will need to pay the tax for alcoholic beverages and cigarettes imported into the state that were purchased either on the ship's duty free store or at a foreign port of call. TABC currently operates 20 ports of entry collection facilities along the Texas-Mexico border where the tax is presently collected. During the recent legislative session, the agency was appropriated funding to begin tax collection of imported alcoholic beverages and cigarettes from seaport facilities. The Galveston Port facility will be the first seaport location where this tax will be collected with plans to extend to the Houston-Bayport facility in the fall of 2014.

Section 107.07 of the Alcoholic Beverage Code, in effect for over 40 years, requires that each adult (21 years old and over) importing alcoholic beverages into the state for personal consumption pay the state tax and an administrative fee of $3.00. The law limits personal importation by an adult to once every 30 days with limits of: 1 gallon of distilled spirits, 3 gallons of wine, and 288 ounces of malt beverages (24 12-ounce containers). Persons importing alcoholic beverages must personally accompany the product as it enters the state. For a detailed list of the taxes for both cigarettes and alcoholic beverages go to http://www.tabc.state.tx.us/poe/tax_rates.asp.

Tax collection points staffed with TABC personnel will be situated at both terminals 1 and 2 at the Galveston facility located where patrons come through the U.S. Customs secondary checkpoint. Passengers will be able to pay the taxes with either cash or credit cards.

TABC personnel have worked with Port of Galveston officials to ensure that the tax collection is done efficiently and with limited disruption of port operations and delays to the passengers.

For more information contact:

Karen Smithwick, Ports of Entry Director at 512-739-9801

Carla Rios, Ports of Entry Quality Assurance Analyst at 512-206-3351

Carolyn Beck, Director of Communications at 512-206-3347

Whats the point of duty free now?

:TABC personnel have worked with Port of Galveston officials to ensure that the tax collection is done efficiently and with limited "disruption of port operations" and delays to the passengers.

Yea right, limited disruption. :rolleyes: I foresee a nightmare.:eek:

And other states will fellow..

:eek:

oh customs was quick. it was waiting for those tax collectors that took forever. :cool:

Ooh goodie. More red tape. :rolleyes:

That is awful. Maybe the cruise line can lower the price of alcohol on board so it doesn't hit the pocketbook so hard thenpeople will still be willing to buy on board.

For a detailed list of the taxes for both cigarettes and alcoholic beverages go to http://www.tabc.state.tx.us/poe/tax_rates.asp.

Ok everyone chill out and look at this link for how much the taxes are. The taxes are $3.75 for a liter of alcohol. It's never good when something gets more expensive, but it will still probably be cheaper than getting it at home. As for cigarettes, taxes are $15 per carton. I don't smoke so I have no idea if that is going to make a difference, but I would think that you would still be saving money over buying at home.

Ok everyone chill out and look at this link for how much the taxes are. The taxes are $3.75 for a liter of alcohol. It's never good when something gets more expensive' date=' but it will still probably be cheaper than getting it at home. As for cigarettes, taxes are $15 per carton. I don't smoke so I have no idea if that is going to make a difference, but I would think that you would still be saving money over buying at home.[/quote']

$3.75 plus the administrative fee of $3.00 (the press release doesn't say if this is per bottle, or per person, so I have no clue if you have to pay it one time or per item). Having to pay a fee for them to collect taxes is ridiculous in my mind. It'd be like paying the IRS to process your tax returns.

$3.75 plus the administrative fee of $3.00 (the press release doesn't say if this is per bottle, or per person, so I have no clue if you have to pay it one time or per item). Having to pay a fee for them to collect taxes is ridiculous in my mind. It'd be like paying the IRS to process your tax returns.

That $3.75 includes the $3.00. So if you payed $15 for a liter of liquor and you would normally pay $25 for that same bottle at home, you are still saving money, even if it wasn't as much as before. I'm not saying it's a good thing, but I just don't want people to think they are getting totally screwed....only slightly:p

$3.75 plus the administrative fee of $3.00 (the press release doesn't say if this is per bottle, or per person, so I have no clue if you have to pay it one time or per item). Having to pay a fee for them to collect taxes is ridiculous in my mind. It'd be like paying the IRS to process your tax returns.

Ssshhh! Don't give them any ideas!

This sets a precedent for other states to start doing the same, as well as for the State of Texas to begin collection taxes at international airports in the state as well.

They have already been having to serve liquor that has had Texas taxes paid on it. They have a special room they have to get liquor from while in port... Dennis

I'm sure I know the answer to this, but this TABC tax applies to all of the passengers on the ship, not just the Texans--right?

That is awful. Maybe the cruise line can lower the price of alcohol on board so it doesn't hit the pocketbook so hard thenpeople will still be willing to buy on board.

ya dont see that happing

If you're talking about JUSTwhen the ship is in port, California has been doing that for as long as I can remember.

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Hello it's the price you pay for no state taxes in Texas.......grab it from tourist and since the don't have Disney take it however you can!!!

but I just don't want people to think they are getting totally screwed....only slightly:p

That's like saying you're only slightly pregnant. You either are or aren't. In this case, you are getting screwed. You are paying for something that you didn't have to pay for before.

If you're talking about JUSTwhen the ship is in port, California has been doing that for as long as I can remember.

 

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It looks like it is for the bottles and cigarettes you buy duty free and bring home. So the lliter of Rum you bought in Cayman, would cost you $3.25 in Texas taxes when you disembark.

What bothers me the most is the differences in what gets taxed from one state to another. Why should alcohol be subjected to an additional tax in Texas, but nowhere else? ThIs should be consistent across all states, although, I can understand the rate varying.

Anyway, next thread... for some reason this one really ticks me off. I'd rather read another thread about tipping. :-)

We don't buy in the duty free on the ship or in the islands when we cruise.

We also are not smokers and don't drink enough to care whether I buy a bottle at the local liquor store or not, regardless of what it costs.

What I don't understand is people buying tax free cartons of cigarettes and liquor only to have to pay $25-$35 to check an extra bag containing this stuff.

When we cruised Europe, their were people who paid $100 for an extra suitcase to bring home stuff from duty free that added up saved them $30.

The price of dragging this stuff now that airline luggage is expensive, why do it to save a few dollars?

As I see it - the duty free stores should be the ones complaining, they are set to lose the most when people realize that with no considerable money saving, why drag it home.

One thing I do not need is another level of government BS. I shall therefore, avoid the Texas ports all together.

We've been paying the taxes at the border crossings in Texas for at least the last 20 years. The payment kiosk is located away from the customs inspection place here in Brownsville, I can't remember ever having to wait to make the payment.

Up until very recently the charge was about a dollar a bottle, I don't know when they snuck the tax increase in, I know it was a surprise the first time we paid the $3. Doesn't matter very much on the liquor since it's unusual for us to bring more than one bottle back, it really hurts on the Mexican wines since it raises the price way over what we pay for wine in the local supermarkets.

If you're talking about JUSTwhen the ship is in port, California has been doing that for as long as I can remember.

 

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In California we aren't paying taxes for liquor we carry off.

We do pay around 10% in taxes on purchases (bar and photo) during embark and debark.

Texas is collecting a tax for all liquor carried off. Texas has other alcohol laws for the cruise industry as well.

Not sure, but I believe only the Federal gov't can legally levy import taxes on goods from other countries or out of country Duty Free shops... I smell a lawsuit...