New to Princess but not to cruising

[sloopsailor]

33 minutes ago, harryfat1 said:

The reason the US companies don't add in the final sales tax price into product is because unlike Europe where there is one VAT rate for each country, the US has over 11,000 different sales tax jurisdictions with state/county/cities all having their different concept on how much sales tax to impose. Thus it's impossible to know the "final price" as they can't imbed just one tax rate as in the US, there are different "layers" of state/county/city tax as every city has a right to charge different sales tax rate as they please.

 

The US sales tax rate can be as low as 0% at handful of states or over 10% at some states when you add in the state/county/city rates.  So when a US consumer sees an item on Amazon online for $100, they may end up paying anywhere from $100 to $110 when the product arrives at their front door as sales tax is charged based on their "ship to" address. Someone living in Oregon has 0% sales tax rate but California at next state at some cities is over 10% tax rate.

 

I live in an area where different cities charges different rates such that a $100 table at the local Walmart is $110 after taxes but if I drive 15 miles to the next town's Walmart, the same exact table will cost me $109 as that city has lower tax rate.

 

Thanks for sharing that information. I used to own a small company that produced custom furniture items for customers who mostly lived in Northern California. When selling a product, I was responsible for calculating the sales tax rate in the customer's city, not in mine where the item was made. Long charts of state, county and sometimes city rates were needed to calculate the appropriate tax rate for that customer's location. I then had to collect that tax and submit it to the appropriate state, county and city tax collection agencies. Before computer programs took care of these calculations, it all had to be done from charts and with a calculator. 

 

It was a major hassle, but had to be done. As a seller, I was always aware that my business could be audited at any time and the taxes charged to customers was high on the list of things they look at. 

 

The United States is so large that it would encompass a large portion of Europe. Each state is governed much like a country is in Europe, with their own laws, taxes and fees. US citizens are used to this, but for Europeans it might seem odd considering that we are all one country. 

 

 

 

 

[FLConnie]

22 hours ago, Nebr.cruiser said:

I don't bring my own hair dryer, but I agree that the ones on Princess are not as powerful as I am used to.  I just don't want to pack anything extra.  Plus, I often just let my hair air-dry.

That's what balconies are for:)

 

[harryfat1]

6 minutes ago, sloopsailor said:

 

Thanks for sharing that information. I used to own a small company that produced custom furniture items for customers who mostly lived in Northern California. When selling a product, I was responsible for calculating the sales tax rate in the customer's city, not in mine where the item was made. Long charts of state, county and sometimes city rates were needed to calculate the appropriate tax rate for that customer's location. I then had to collect that tax and submit it to the appropriate state, county and city tax collection agencies. Before computer programs took care of these calculations, it all had to be done from charts and with a calculator. 

 

It was a major hassle, but had to be done. As a seller, I was always aware that my business could be audited at any time and the taxes charged to customers was high on the list of things they look at. 

 

The United States is so large that it would encompass a large portion of Europe. Each state is governed much like a country is in Europe, with their own laws, taxes and fees. US citizens are used to this, but for Europeans it might seem odd considering that we are all one country. 

 

 

 

 

 

Yeah, I'm a CPA so I feel your pain as I have to deal with taxes daily.

 

The tax rates at some states could be 3 parts - state/county/city where state could be 6% + 1.5% + 2% city.  But a different city in same state but different county could be looking at 6% + 1.25% + 1.38%. Different by city and all based on where the product is delivered to the consumer.

 

Sometimes you do not end up not with a nice clean number like 20% VAT but in cities like San Francisco, it's 8.625% sales tax or San Jose at 9.375% a city that is 50 miles south. That's how you end up with over 10,000 different sales taxing jurisdictions in one country.

 

The key part is in the name "United STATES of America", the key word is states. The country is set up with each state having controls of their destiny so the state/county/cities all are free to set their own tax rates on top of the Federal government imposing income tax rates (but no sales taxes on the Federal level).

 

More info than 99.9% of the people cares to know about taxes.  We now return you to the regular Princess forum...

[villauk]

1 hour ago, harryfat1 said:

The reason the US companies don't add in the final sales tax price into product is because unlike Europe where there is one VAT rate for each country, the US has over 11,000 different sales tax jurisdictions with state/county/cities all having their different concept on how much sales tax to impose. Thus it's impossible to know the "final price" as they can't imbed just one tax rate as in the US, there are different "layers" of state/county/city tax as every city has a right to charge different sales tax rate as they please.

 

The US sales tax rate can be as low as 0% at handful of states or over 10% at some states when you add in the state/county/city rates.  So when a US consumer sees an item on Amazon online for $100, they may end up paying anywhere from $100 to $110 when the product arrives at their front door as sales tax is charged based on their "ship to" address. Someone living in Oregon has 0% sales tax rate but California at next state at some cities is over 10% tax rate.

 

I live in an area where different cities charges different rates such that a $100 table at the local Walmart is $110 after taxes but if I drive 15 miles to the next town's Walmart, the same exact table will cost me $109 as that city has lower tax rate.

 

Thanks for the explanation. As I stated, it’s a cultural thing: we find it strange to not know the exact amount you are paying for an item and you are completely used to this system - hence the way drinks are charged on an American line 👍.

[USCcruisecrazy]

11 hours ago, wowzz said:

If you read my post, I am not challenging the service charges. 

All I am suggesting is that the service charges be rolled into the overall price. The staff would still get the 18%. and the customer knows exactly the price of the drink. Win/win . 

 

I'm guessing it has to do with the book keeping.  By charging the gratuities separately, it's easier to track the numbers.  Can you imagine the accountant having to figure out income via gratuities (not taxable for Princess) vs income via sales (taxable)...what a nightmare!!  And now with their different packages, with the Princess Plus you get charged a gratuity for only the amount above $12.  

[JF - retired RRT]

Pretty sure Sunshine 7272 didn't didn't ask about taxes. Maybe start a different thread for these tax comments?

[Sunshine7272]

Thank you for all your replies and wonderful advice, happy cruising ❤️

 

 

[sloopsailor]

3 hours ago, USCcruisecrazy said:

I'm guessing it has to do with the book keeping.  By charging the gratuities separately, it's easier to track the numbers.  Can you imagine the accountant having to figure out income via gratuities (not taxable for Princess) vs income via sales (taxable)...what a nightmare!!  And now with their different packages, with the Princess Plus you get charged a gratuity for only the amount above $12.  

 

And that book keeping is more difficult because each nationality country may have different tax codes and tax limits. A nightmare for certain. 

Edited August 2, 2022 by sloopsailor

[sloopsailor]

2 hours ago, JF - retired RRT said:

Pretty sure Sunshine 7272 didn't didn't ask about taxes. Maybe start a different thread for these tax comments?

 

Or maybe skip these comments and read only what pleases you? 

 

The only reasons this is being discussed is the "The service charge should be incorporated in the base fare" comments one or two people keep bringing up. Perhaps eventually they will begin to understand why and enjoy their cruises rather than complain about one aspect of it. 

Edited August 2, 2022 by sloopsailor

[wowzz]

1 hour ago, sloopsailor said:

Perhaps eventually they will begin to understand why and enjoy their cruises rather than complain about one aspect of it. 

Who's complaining?