Press Release: Texas to Begin Collecting Taxes on Alcohol in Galveston

[WeighAnchor]

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/press_releases/2013/20131220.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

Edited December 20, 2013 by WeighAnchor

[jmorgania]

Sounds like duty free won't be so duty free anymore. I can see this impacting cruise lines decisions whether or not to use Texas ports in the future.

Edited December 20, 2013 by jmorgania

[bilyclub]

Another reason to stay away from Galveston, but of you are in transit and leaving Texas the same day do they still tax you?

 

 

 

 

Tax Rates Table

 

Tax Rates Effective September 1, 2011

(including $ 3.00 administrative fees)

Distilled Spirits

Miniatures (2 oz. or less) (50 ml or less) $ 3.25

Half Pint (200 ml) 3.25

Pint (500 ml) 3.50

Fifth (750 ml) 3.50

Quart (1 ltr) 3.75

1/2 Gallon (1.75 ltr) 4.25

1 Gallon (3.5 ltr) 5.50

Beer

6 12-ounce containers $ 3.25

24 12-ounce containers 3.50

Malt Liquor

24 12-ounce containers $ 3.50

Wine

Fifth (750 ml) $ 3.25

Cigarettes

Carton (10 packs) $ 15.00

Pack 1.50

Edited December 20, 2013 by bilyclub

[Ladysilver]

I'm glad I don't drink or smoke. :D

[rushedmom]

Great we finally get an RC ship year round again and TABC does this.... ughh

[UNV-IT!!!]

Well that ends that. Won't ever sail out of galv now.

[overthehillcruiser]

We do not smoke but I noticed the $15.00 tax for a carton, so looks like not much of advantage to buy onboard anymore. I wonder how much this will slow down debarkation ?

[boaterette]

Wow. Hope other states don't start doing this.

[JohnSnowGOT]

Did you say Texas? SHOCKING!

Don't they want to be there own nation?

[markeb]

Did you say Texas? SHOCKING!

Don't they want to be there own nation?

 

Texas--A whole other country!

 

(Long time ad campaign.)

 

And, yes, Texas is the only state in the union to be an independent republic...

 

Having said all that, it's not that long of a drive from Galveston to New Orleans. Texas residents have always been required (largely unenforced) to pay usage tax on out of state purchases, duty free, etc. But this would pretty much zap nonresidents as well, and I don't recall if Texas has a rebate program for non-US visitors; some states do.

[JohnSnowGOT]

Texas--A whole other country!

 

(Long time ad campaign.)

 

And, yes, Texas is the only state in the union to be an independent republic...

 

Having said all that, it's not that long of a drive from Galveston to New Orleans. Texas residents have always been required (largely unenforced) to pay usage tax on out of state purchases, duty free, etc. But this would pretty much zap nonresidents as well, and I don't recall if Texas has a rebate program for non-US visitors; some states do.

 

Well not impugn the good people of the state of Texas.....But really it's 2014.

[KittyCat1Million]

I am thinking there will be some pretty low prices on the bottles and cigs sold on board to make up for this. They will still make a profit. I live in Texas. They don't want a State Income tax so they sales tax the heck out of of everything else.

[FLACRUISER99]

Well that ends that. Won't ever sail out of galv now.

Nor will I.

[seaofwonder]

I thought I read that this only applies to residents.

 

 

Sent from my iPad using Forums mobile app

[denamo]

Galveston is one of the most disorganized ports upon disembarkation that we've ever cruised, and I am a born and bred Texan. Came in last Sept. from a Panama Canal Disney cruise, and it was just nuts! Witnessed one guy getting into a verbal argument with a security gal who truly egged him on. I think she must have missed class the day the " how to de-escalate a disgruntled passenger" lecture was given. :eek:

 

The port authorities desperately need to evaluate and create a better flow of passengers disembarking. No one is outside to provide direction. It's like the security doesn't want to be out in the heat, so they stand right inside the door to stay cool and try to manage the crush of passengers. Have cruised many times on RCCL ships out of Galveston, and always the same experience. Fortunately, it truly only lasts for a few minutes, and then we are in our car and gone. We deal, say how much fun we had on board, and move on. ;)

 

I cannot imagine how much the customs officers /TABC officers will dread having to deal with people paying the tax on liquor. Another clog in an already flawed disembarkation plan. Not sure if the cost of paying these employees will truly justify the taxes collected.

 

All of this being said, our love of cruising began when the Rhapsody was the ship year round in Galveston. We've done summer, Christmas, and New Year's cruises from there. We are already booked on the Navigator for next May. So, obviously, we are loyal to Royal and willing to deal with disorganization of a Galveston disembarkation. OK...all done! :)

Edited December 21, 2013 by denamo

[MyDogRudy]

I am thinking there will be some pretty low prices on the bottles and cigs sold on board to make up for this. They will still make a profit. I live in Texas. They don't want a State Income tax so they sales tax the heck out of of everything else.

 

The ship is not going to lower prices because one state wants to collect taxes on items not purchased in their state. Plus, this affects purchases from other countries being brought in to TX and they certainly are not going to lower their prices to compensate. Plus the additional hassle of paying taxes while passing through customs is going to be a nightmare.

 

Sorry Texas...no way am I going to fund your state budget because you don't collect income taxes. Bad enough the sales taxes are so high when I actually purchase items while in your state, but now you want to collect taxes on items not purchased in Texas by non-residents passing through?

 

I have in-laws in Texas and was considering trying to organize a cruise out of Galveston for us all but flights are already more expensive for me to get there than Miami/FLL and now this? I'd rather the in-laws visit us (staying at my house for two weeks at a time :eek: ) than support this blatant toll/tax/fee for passing through a state I already dislike for various other reasons.

Edited December 21, 2013 by MyDogRudy

[DragonOfTheSeas]

Another reason to stay away from Galveston, but of you are in transit and leaving Texas the same day do they still tax you?

 

Exactly what I thought when I read this. My DS and DIL live in TX. So, we thought we might try Galveston for a change. But, I have read many things about the port and now this. There are too many good east coast ports.

[overthehillcruiser]

You should see what our property taxes are as well..:eek: What I do not understand about this forum is why someone wants to bad mouth our state when they have a choice whether to come here or not ?? Most Texas people are friendly, and do not state they dislike some other state for "various" reasons as someone above said. Hey, if you don't like us, don't come here..I am not really trying to start anything, and I am totally against the new tax deal as well, I just wish we could keep it friendly..:)

[Ocean Boy]

I am thinking there will be some pretty low prices on the bottles and cigs sold on board to make up for this. They will still make a profit. I live in Texas. They don't want a State Income tax so they sales tax the heck out of of everything else.

 

RCI will not lower pricing to make up for the tax. More likely what will happen is if sales drop significantly on the ship because of the tax people will face on returning then RCI will re-think porting a ship in Texas.

[mnh]

You should see what our property taxes are as well..:eek: What I do not understand about this forum is why someone wants to bad mouth our state when they have a choice whether to come here or not ?? Most Texas people are friendly, and do not state they dislike some other state for "various" reasons as someone above said. Hey, if you don't like us, don't come here..I am not really trying to start anything, and I am totally against the new tax deal as well, I just wish we could keep it friendly..:)

 

Like....

[JohnSnowGOT]

the ship is not going to lower prices because one state wants to collect taxes on items not purchased in their state. Plus, this affects purchases from other countries being brought in to tx and they certainly are not going to lower their prices to compensate. Plus the additional hassle of paying taxes while passing through customs is going to be a nightmare.

 

Sorry texas...no way am i going to fund your state budget because you don't collect income taxes. Bad enough the sales taxes are so high when i actually purchase items while in your state, but now you want to collect taxes on items not purchased in texas by non-residents passing through?

 

I have in-laws in texas and was considering trying to organize a cruise out of galveston for us all but flights are already more expensive for me to get there than miami/fll and now this? I'd rather the in-laws visit us (staying at my house for two weeks at a time :eek: ) than support this blatant toll/tax/fee for passing through a state i already dislike for various other reasons.

 

 

like

[Piepkorn]

I'm just wondering how many people this will really affect. How many people really buy these items on a ship? I know I won't bring alcohol back on an airplane (without fear of the bottle breaking in checked bag), so if buying alcohol on a trip, will just have it shipped back home. Sounds to me like it will cost more to put agents there than they will recover.

[JohnSnowGOT]

I'm just wondering how many people this will really affect. How many people really buy these items on a ship? I know I won't bring alcohol back on an airplane (without fear of the bottle breaking in checked bag), so if buying alcohol on a trip, will just have it shipped back home. Sounds to me like it will cost more to put agents there than they will recover.

 

Over the past few years the price of alcohol has gone way up on cruise ships. Not really a great deal anymore...Sometimes you can get a better deal at Sams Club or BJ's on liquor. A few dollars savings isn't worth the hassels

[Ocean Boy]

I'm just wondering how many people this will really affect. How many people really buy these items on a ship? I know I won't bring alcohol back on an airplane (without fear of the bottle breaking in checked bag), so if buying alcohol on a trip, will just have it shipped back home. Sounds to me like it will cost more to put agents there than they will recover.

 

Considering the amount of retail space RCI has devoted to alcohol and tobacco sales on the Promenade of Independence I suspect they are selling quite a bit. They even got rid of the Logo shop in order to make more room.

[3littlepigs]

Maybe I misunderstood the article but I read it as you could have 1 gallon per person without paying tax.

 

Here its half that amount and the ships just restrict the amount they sell to each passenger to the limit.

 

No hassles, no lines, no stress.

 

I don't think anyone has anything to worry about:)