No Sales tax in NJ for the banquet hall rental ???

substratecomplex

While on my trip to numerous wedding venues I came to know form one of the managers that there is no sales tax on the rental space. After some searching online I found that "Rentals of conference rooms, banquet rooms, and other places of assembly are exempt from both sales tax

and the State occupancy fee" (http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/prior_years/anj17_1204.pdf). Can any accountant validate this or find this somewhere in the NJ tax code ?

THanks....  

HisGirlFriday13

I'm neither an accountant nor a resident of New Jersey, but that PDF was produced by the state's division of taxation, so I would trust it. 

JCbride2015

Wait, what??  We paid sales tax on our venue in NJ, I am 99% sure.  Maybe this is a subsection and only applies to certain people, like non-profits.  Now I want to go on a hunt for this... because that would be awesome.

OliveOilsMom

OP - I would trust that flyer as it is from the State of NJ.  There is no tax to rent the facility, but your caterer will charge you taxes for their services.

JCBride - If your venue is an all in one, as mine was, you will be charged tax becasue it is a full service operation.  When you have an all in one the use of the facility is worked into the price along with the food, booze, and anything else your venue offers.  So you will pay tax on whatever the pp is.  However, save your receipt from the venue as your taxes paid on the event will be tax deductable when you file the following year.  I know that my parents were able to do that for their taxes, since they paid for the reception.

JCbride2015

OliveOilsMom said:

OP - I would trust that flyer as it is from the State of NJ.  There is no tax to rent the facility, but your caterer will charge you taxes for their services.

JCBride - If your venue is an all in one, as mine was, you will be charged tax becasue it is a full service operation.  When you have an all in one the use of the facility is worked into the price along with the food, booze, and anything else your venue offers.  So you will pay tax on whatever the pp is.  However, save your receipt from the venue as your taxes paid on the event will be tax deductable when you file the following year.  I know that my parents were able to do that for their taxes, since they paid for the reception.

That makes sense.  I didn't even question that they would charge tax because I always pay tax at restaurants.

Why would this be tax-deductible?  I've only heard about tax-deductible weddings if it's at a non-profit event space, like the Housing Works bookstore.

OliveOilsMom

I have no idea why it would be tax deductible, but my mom's accountant asked them for the information.  So I'm not sure under what category you would put that information.  But it is tax deductible.  I think I also remember reading an article on The Nest about portions of your wedding being tax deductible.