Reception service charge and sales tax charges

Each one is added to your subtotal. So if your bill is $1000, you do 1000 x .21 and 1000 x .08

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

Ask the venue to total it for you.

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.

@ 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

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.

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/

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...

Should FL sales tax be charged on Design, Delivery, Set up, Strike, and Recovery Fees from a Floral and Decor vendor?

I just started a wedding venue in Fort Myers called Grace River Island Resort. I called the state of Florida and they said I must collect 6.5% sales tax (our tax rate in Lee County) on all charges related to the venue. I thought sales tax was just for products and services. They said they treat events like this as short-term rental income.