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.
Re: Service Charges and Sales Tax!!!
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
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We're not getting charged tax on the "service charge"... but an other venue we looked at tried to...