Reception service charge and sales tax charges
Hello,

I am in the process of doing my contract with the reception venue and they are charging me 21% service charge and 8% sales tax. Now my question is how should i calculate this to get the total amount. Is it 21% of the price and the 8% of the result. Or do you calculate the 21% of the original price and the 8% of the original price as well.?

Please give me an advice i am very confused and i dont want to be paying taxes double.

Thanks i appreciate any feedback.

Married: 12/04/2010
Reviews: 1
Posted On: Feb 4, 2010 at 10:20 AM • Vendors are allowed • Add to My WatchlistFlag As Inappropriate1 like

8 Comments | Login or Signup to post a comment!

ladylee
Married: 06/05/2010
Feb 04, 2010 at 10:23 AM • Flag As Inappropriate
Each one is added to your subtotal. So if your bill is $1000, you do 1000 x .21 and 1000 x .08

Married: 12/10/2010
Reviews: 6
Feb 04, 2010 at 10:23 AM • Flag As Inappropriate
21% of the original price then 8% of the original price. Add those together and add them to the original price. You do NOT pay sales tax on service charges/gratuities. Also, check with your banquet facility and state laws but most states it is not required that the venues charge tax on alcohol. They do because they can. Hope this helps

Peaches
Married: 2+ years ago
Reviews: 3
Feb 04, 2010 at 10:27 AM • Flag As Inappropriate
Ask the venue to total it for you.

Unique
Married: 02/11/2010
Feb 04, 2010 at 10:30 AM • 
This post has been flagged by the WeddingWire Community and is now hidden.

3.6.10Bride
Married: 03/06/2010
Reviews: 2
Feb 04, 2010 at 10:43 AM • Flag As Inappropriate
Actually, I have to disagree. Some states, Ohio for example, charge tax on service charges if it is a mandatory fee. For example, if you go to a restaurant that says they include the tip for you, you'll get charged tax on the tip. But if the tip is left up to you, you don't pay tax on it.


Your best bet is to ask the venue for a total.

ladylee
Married: 06/05/2010
Feb 04, 2010 at 10:45 AM • Flag As Inappropriate
@ Unique, your total is too high. You did exactly what she is trying to avoid. She shouldn't pay taxes on the gratuity. Neither should the gratuity be calculated after tax. If the subtotal is $1589, then her grand total with gratuity and tax should only be $2049.81

Married: 12/04/2010
Reviews: 1
Feb 04, 2010 at 11:05 AM • Flag As Inappropriate
Thank you guys for the help ....it is more clear to me now but i will check with the vendor. Although i dont think taxes should be charge on top of other taxes.

srolon
Married: 2+ years ago
Feb 28, 2010 at 3:02 PM • Flag As Inappropriate
Grettel- we asked our venue to tell us exactly how it would break down for our minimum head count and for our maximum head count. That way you have it directly from them and in writing (hopefully)!

Also an interesting tax break if you're paying a lot of sales tax:
http://survivinginnyc.blogspot.com/

Married: 04/02/2011
Reviews: 4
Mar 07, 2011 at 2:26 PM • Flag As Inappropriate
I am getting married in Florida which has been an eye opener (coming from New York) at the exorbitant prices for not much service. I have had no problem with the charging of tax or service fees until I just heard from the Hyatt who is holding our rehearsal dinner. They are saying that they are mandated by law to charge tax on the service fee. I think that is crazy. Does anyone know if this is in fact Florida law because none of my other vendors are charging this...
Login or Signup to post a comment!

Topics

Vow of Conduct