Tax after gratuity?

I'm in VA, but I know my caterer specifically told me that I will not be taxed on gratuity, and gratuity will not be calculated on the tax. I believe the two should be mutually exclusive.

Is it gratuity or is it a service fee/charge? I'm not familiar with Texas, but in Connecticut a service fee paid to the caterer is taxable. Optional gratuity paid directly to the service staff would not be taxable.

I'm guessing that every state is different. DE has no sales tax. In our state, the sales tax was calculated on both the food charges and the gratuity. (I.e $100 food plus 20% service charge = $120 that the sales tax was calculated on). Our open bar did not have an added sales tax, but we were still charged the 20% service fee.

Yeah.. I see. Perhaps the tax on gratuity is because of the cater. I will definitely look into the situation more! Thank you guys for helping me out!

In CA we have 17% gratuity/service fee that IS taxed.

I think the gratuity was taxed on mine :-/ im in Massachusetts/ taxachusetts