Taxes on drinks in Alaska

[acct1975]

Hi,

Going an Alaskan cruise next year and wondered something when it comes to drinks on ship. We'll have a drink package so basically free bar but will we still have to pay local tax? On my last cruise, while docked in NYC before departure, we were billed the tax on drinks. Is this something I need to factor into my budget for every stop on a 7 day Alaskan cruise?

 

Thanks in advance for all your insight!

[1025cruise]

Yes, you will need to pay sales tax while in port. Fortunately, Alaska doesn't charge sales tax.

[ngrund]

4 hours ago, acct1975 said:

Hi,

Going an Alaskan cruise next year and wondered something when it comes to drinks on ship. We'll have a drink package so basically free bar but will we still have to pay local tax? On my last cruise, while docked in NYC before departure, we were billed the tax on drinks. Is this something I need to factor into my budget for every stop on a 7 day Alaskan cruise?

 

Thanks in advance for all your insight!

No tax in Alaska, but where does the cruise start? If Seattle, you will probably be charged tax while docked and for a little while after.

 

[Glaciers]

There’s no state tax, but some of the local communities do have a  tax.

[Northern Aurora]

4 hours ago, Glaciers said:

There’s no state tax, but some of the local communities do have a  tax.

 

Just to expand slightly on @Glaciers's response -- a surprising number of the southeast communities do indeed have a local sales tax.  I think I correctly remember the number of communities, but since I am not absolutely certain I shouldn't post it.  But the number really surprised me as it was more than this Alaska resident had anticipated.  No statewide sales tax.

[quack2]

Does it matter?

[sherryf]

Why would you pay taxes on drinks if you have the drink package?  If your drinks are included, then you aren't paying anything for the drink, so don't pay any taxes on them.  I've had a drink package both times I've sailed on HAL and I don't recall ever seeing taxes for drinks show up on my tab.

[ngrund]

6 hours ago, sherryf said:

Why would you pay taxes on drinks if you have the drink package?  If your drinks are included, then you aren't paying anything for the drink, so don't pay any taxes on them.  I've had a drink package both times I've sailed on HAL and I don't recall ever seeing taxes for drinks show up on my tab.

In some ports the states/cities still want their tax $ on drinks served while ship is docked, even if you have the drink package. Tax is based on menu price of the drink. So even in high tax NY, it's maybe $2 at the most per drink,

 

Some lines-I know RCL does and I presume from your experience HAL just pay it themselves don't charge the passengers. Carnival just doesn't let the drink package start until the 2nd day in those ports.

 

 

[Glaciers]

We did a Panama Canal in April/May on NCL and we're charge the local tax on drinks onboard while in port. Maybe $1/drink. We had the drink package.

[GTJ]

7 hours ago, ngrund said:

In some ports the states/cities still want their tax $ on drinks served while ship is docked, even if you have the drink package. Tax is based on menu price of the drink. So even in high tax NY, it's maybe $2 at the most per drink.

What is it that is being taxed? Ordinarily, taxes are imposed on sales, but the "sale" would have been made outside the taxing jurisdiction. A portion of the items purchased might be delivered within the taxing jurisdiction, but then there's the question of apportionment of the total sale (for which the entire sale, not menu prices, would control). Could Is it a use tax? But use taxes are ordinarily imposed on the consumer. The magnitude might not be great to any individual taxpayer, but the apportionment issue is an interesting challenge to the cruise line. I am reminded of decisions of the U.S. Supreme Court in Oklahoma Tax Commission v. Jefferson Lines, Inc., 514 U.S. 175 (1995), and Central Greyhound Lines, Inc. v. Mealey, 334 U.S. 653 (1948), both relating to the apportionment of taxes by interstate bus lines.

[ngrund]

if the ship is still docked and for the time before geting out to open sea, these states consider the ship in their juristiction. The worst state for this is TX, where the ships can only serve from certain bottles taxed by TX.

[sherryf]

9 hours ago, ngrund said:

Some lines-I know RCL does and I presume from your experience HAL just pay it themselves don't charge the passengers. Carnival just doesn't let the drink package start until the 2nd day in those ports.

That sucks.  One of the first things I want to do when I get on the ship is order a drink, and I wouldn't want to pay for drinks the 1st day if I have a drink package!

[ngrund]

1 hour ago, sherryf said:

That sucks.  One of the first things I want to do when I get on the ship is order a drink, and I wouldn't want to pay for drinks the 1st day if I have a drink package!

yep, but with Carnival the drink package is only sold starting day 2. but you at least know that when buying the package

[auntmeg]

Question for the OP. Just curious.

 

Is this really something that you would need to "budget" for?

 

Max 15 drinks per day. Taxes on $11 drink price would likely be no more than $1. Likely 3 port days in Alaska on typical cruise. So maybe $45 total for the whole cruise if you bought all your drinks while in port which is unlikely.

Edited August 12, 2023 by auntmeg

[eileeshb]

Effectively depending on local laws the cruiseline may have to pay import/excise duties on anything they sell in the ship, it’s why the stores are always closed when you are in port. Anything sold or served in port could then be liable for those duties. It seems that some cruiselines just absorb those extra charges whereas NCL passes it onto passengers.  The issues in England and Italy are a bigger version of the same state taxes rigmarole with even less excuse. 

[acct1975]

On 8/12/2023 at 6:04 PM, auntmeg said:

Question for the OP. Just curious.

 

Is this really something that you would need to "budget" for?

 

Max 15 drinks per day. Taxes on $11 drink price would likely be no more than $1. Likely 3 port days in Alaska on typical cruise. So maybe $45 total for the whole cruise if you bought all your drinks while in port which is unlikely.

It's more for a new cruiser in our party. I want them to have a full picture of the costs of a cruise. I LOVE to cruise but there are so many "hidden" costs (for lack of a better word) that I want to be sure, if asked, I have an accurate answer for them

[DesertRat46]

With HAL & Celebrity (at least last year) if you have the drink package in Canadian and Alaska ports, there has never been a tax charged, So I'm guessing the cruise lie just absorbs the cost.

[Coral]

I did not in Alaska on my 11 night Princess cruise.

Edited August 25, 2023 by Coral

[Aquahound]

I've had a drinks package on every one of my last 4 Alaska cruises.  Not once was I charged an extra tax....not in the embarkation port of Seattle, and not anywhere in Alaska.  

[emmajo]

3 hours ago, Aquahound said:

I've had a drinks package on every one of my last 4 Alaska cruises.  Not once was I charged an extra tax....not in the embarkation port of Seattle, and not anywhere in Alaska.  

Which cruise line?

[Aquahound]

18 minutes ago, emmajo said:

Which cruise line?

 

Royal Caribbean.  I also cruised HAL to AK a few years ago with a beverage package and was not charged then either.