Service Charges and Sales Tax!!!

TeamDD2010

Hi everyone-

I received an estimate from a reception site I am heavily considering, however, they taxed both the subtotal AND the service charge.  Is that correct?  Shouldn't they be charging the sales tax on the subtotal only and not both?  When I added everything up, it would save me a good $400 bucks.   Would love everyone's two cents before I talk to them about it.

Mellie35

I think a lot of places try and get away with this. My venue charged us tax on the subtotal and not the service charge. I would mention it and see what they say. Good luck!

RizzWedding

Hi,

Legally,if the venue states on their menu/contract that there will be a service charge of some sort included in the bill, then the venue has given you a mandatory service charge. Mandatory service charges are taxable in California (unfortunately).

heres a  link I found that might be of help: http://www.boe.ca.gov/pdf/pub115.pdf

xxquemirasxx

Yup we got taxed on Service charge....

its sad but legal 

futuremrsmueller12

We're not getting charged tax on the "service charge"...  but an other venue we looked at tried to...

[Deleted User]

We got taxed the service charge too. No way to get around it.  Sorry

echavez311

We are getting taxed on the service charge too....and it is a lot of money!