Service Charges and Sales Tax!!!

TeamDD2010 · October 2010

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 · October 2010

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 · October 2010

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