Service Fee & Sales Tax

Jules08

Hi Ladies!

I am helping a CW plan her wedding and it's been a few years since mine and I honestly don't remember the answer to a question, so I thought I would post here.

(Wedding IS in Wisconsin)

I looked at her cost breakdown provided by the reception venue - the venue charged a 22% service fee and 5.6% sales tax, pretty normal, but then I ran the numbers and noticed that the service fee was also taxed the 5.6% sales tax, is this typical?

TIA

rungirl12

Yes, I don't remember why, but I do recall coming across this question on here elsewhere and that is typical.  Ridiculous, huh?

Jules08

Thank you!  Yes, it certainly leans more towards the ridiculous side, but I did have a feeling it might be legit.

stina&brad

Its a state to state thing. In some states it is charged. If on the invoice it isnt listed as gratuity...and rather is a bulk fee so to speak...they do usually have to add tax on it...