Told we pay extra $2 per drink on top of package in US port?

[Sebastianald]

On a recent Norwegian cruise.  We were informed we are charged $2 per any drink already paid for in our all inclusive cruise drink package when near US ports specifically Miami and key West.  

We were never informed of this and many passengers are irritated.  Can anyone explain if Florida or Norwegian is making this tax up?  Especially since casino and duty free were open but they still charged the $2 fee meaning we were outside US waters without informing guests.

Staff was inconsistent in explaining distance from ports nor could say when or where this tax was lifted except when in Bahamas.

Thank you

 

 

[caribsun]

My understanding is that US cities such as Galveston, Miami, NYC etc charge a city tax of 7-8% per drink when within city limits. 

[Sebastianald]

Thank you caribsun.  Technically you prepay for a daily rate but to charge per unit sounds quite unlikely mathematically to justify a tax on a set amount.  To charge a per unit rate with not knowing if you purchase 1 or 20 Doesn't tax you on an actual daily unit cost. Also $2 per drink tax equates at 7% to them estimating each drink at $29.00.   

I asked management for where it detailed this and all they pointed to was a print "applicable taxes and gratuities apply". I wanted the legal or justification on where it applies if they still charge in international waters but not a single manager on board could define the rules 

 

[sparks1093]

11 minutes ago, Sebastianald said:

Thank you caribsun.  Technically you prepay for a daily rate but to charge per unit sounds quite unlikely mathematically to justify a tax on a set amount.  To charge a per unit rate with not knowing if you purchase 1 or 20 Doesn't tax you on an actual daily unit cost. Also $2 per drink tax equates at 7% to them estimating each drink at $29.00.   

I asked management for where it detailed this and all they pointed to was a print "applicable taxes and gratuities apply". I wanted the legal or justification on where it applies if they still charge in international waters but not a single manager on board could define the rules 

 

It is all programmed into the point of sale system and none of the managers onboard have anything to do with that. Whenever I've paid tax on a drink with a drink package the tax was calculated on the actual cost of the drink. A flat tax sounds bogus.

[chengkp75]

Not sure I follow all the gobbledygook that the OP is saying, but will try to explain how things happen.

 

First, duty free can be open as soon as the vessel is outside the harbor limits, since the ship itself is foreign territory.  And, duty free just means that no duty was paid to import the goods into the US, by the seller, so they can pass the savings on to the customer.  The customer still has to pay any duty required when bringing the goods back into the US (or other country).

 

The casino will open when 12 miles offshore.

 

The state of Florida has a 6% sales tax, while Miami-Dade county assesses an additional 1%.  This is levied on each purchase, based on the "list" price of the purchase (in your case, each drink).  This tax is levied anytime the ship is within 3 nm of land in Florida.  Typically, the bridge notifies the purser's office whenever the ship crosses the 3 mile or 12 mile limit, and the POS registers are reprogrammed to start or stop charging tax.  

 

I don't believe you were being charged a flat tax of $2/drink, I believe you misunderstood that even with a "free drink package", you still need to pay the 20% gratuity charge per day.

[njhorseman]

1 hour ago, chengkp75 said:

I don't believe you were being charged a flat tax of $2/drink, I believe you misunderstood that even with a "free drink package", you still need to pay the 20% gratuity charge per day.

I've never seen it charged as a flat tax. 

The 20% gratuity charge for the beverage package is prepaid with your cruise fare.  It doesn't come into play on board except if you're buying a beverage that isn't covered by the beverage package or a beverage priced over $15 in which case you're charged the excess over $15   so $5 on a $20 drink, plus the 20% gratuity on the $5.

[NotADopey1]

If you are really concerned, contact the Florida Department of Revenue and report a tax violation. They oversee the state.  You can also look up the local departments to see what they say.

[edinburgher]

4 hours ago, Sebastianald said:

On a recent Norwegian cruise.  We were informed we are charged $2 per any drink already paid for in our all inclusive cruise drink package when near US ports

There was a similar debate (actually more than  one thread)  last year when NCL (and only NCL) passengers were taxed on drinks in some European countries. It was a VAT charge.

 

A quick google found this one but there were others over a period of a few months.

https://boards.cruisecritic.co.uk/topic/2963144-10-vat-tax-added-to-all-free-at-sea-drinks-on-ncl-while-in-med/

 

There was also a higher VAT charge on any items bought in the onboard stores.

 

Searching  CC or googling should find some of these threads and/or media reports. A quick search on the NCL board found these, some of which may be applicable

https://boards.cruisecritic.com/search/?q=tax on alcoholic drinks&quick=1&type=forums_topic&nodes=64&updated_after=any&sortby=relevancy&search_and_or=and

 

 

Edited March 18 by edinburgher

[mnocket]

3 hours ago, chengkp75 said:

Not sure I follow all the gobbledygook that the OP is saying, but will try to explain how things happen.

 

First, duty free can be open as soon as the vessel is outside the harbor limits, since the ship itself is foreign territory.  And, duty free just means that no duty was paid to import the goods into the US, by the seller, so they can pass the savings on to the customer.  The customer still has to pay any duty required when bringing the goods back into the US (or other country).

 

The casino will open when 12 miles offshore.

 

The state of Florida has a 6% sales tax, while Miami-Dade county assesses an additional 1%.  This is levied on each purchase, based on the "list" price of the purchase (in your case, each drink).  This tax is levied anytime the ship is within 3 nm of land in Florida.  Typically, the bridge notifies the purser's office whenever the ship crosses the 3 mile or 12 mile limit, and the POS registers are reprogrammed to start or stop charging tax.  

 

I don't believe you were being charged a flat tax of $2/drink, I believe you misunderstood that even with a "free drink package", you still need to pay the 20% gratuity charge per day.

Why hasn't this post put the matter to bed?

[Charles4515]

9 hours ago, chengkp75 said:

Typically, the bridge notifies the purser's office whenever the ship crosses the 3 mile or 12 mile limit, and the POS registers are reprogrammed to start or stop charging tax.  

 

One of the cruise lines I was on some of the bar servers would wait to run the tab until after the 3 miles. I don't know if they still do. 

[JamieLogical]

I don't see how this $2 charge could be tax. No tax rate in any US port is >10%, so even if you were ordering $20 drinks, the tax wouldn't be $2. NCL's regular drink package only covers drinks up to $15. So if you were paying say, 8% on a $15 drink, then the tax would only be $1.20.

[Sebastianald]

I apologize if this sparked some attacks and defends.  Confirmed yes it was a flat $2/drink from multiple bartenders.  He checked the pos system when we were in between Miami and Florida keys and it still states $2 no matter soda or alcohol.  I asked mgt to leave copy of policy or send me a copy where this is detailed.  Nothing came.  Going to call when back on shore.  I don't care a few dollars I just don't like not being informed or lied to or not told as do dozens of other couples whom we've encountered.

Prior poster is likely correct they justify with a handling or processing fee of $2 which includes any Florida tax.  I'll confirm and post if I can but thank all other posters for this topic.