How is the tax and gratuity usually calculated?

Dannie138 · August 2009

I'm trying for a guesstimate

of what our final bill will be? Does anyone know how venues typically calculate it? Thanks!

melinda478 · August 2009

It should be in your contract.

nicole0827 · August 2009

Our venue calculated tax on all food and beverage. I don't believe room rental fees should be taxed, as ours wasn't. The gratuity charge was calculated after the tax was added to the bill. Originally I didn't think that was right, but I did some research and found out that they are allowed to do that. Hope this helps a little.

Dannie138 · August 2009

Thanks....and I will reread the contract, but I didn't see it there.

SummerBoston10 · August 2009

For my venue I pay (1) 7% RI sales tax which is calculated on the total bill before the Admin charges are added in, (2) 1% Newport tax on food and beverage only, and then (3) the Admin charge is based on the pre-tax total bill. The admin charge is NOT taxed.

AmyRI · August 2009

I actually called the state to see what taxes they could charge on food, beverage, fees, and gratuity. And, as much as I disagreed with the policy, this is how it goes: If your contract states a certain percentage of gratuity that must be paid, it is taxable (both 7% sales and 1% meals tax). Room fees are also taxable, but whether or not they charge you gratuity on the room fee is up to the venue (and should be stated in the contract). So, take the total food & beverage bill, calculate the gratuity and add all that plus room fees together. Then do 8% tax on that total.

scubascaff · August 2009

It should be already included in your invoice. Im not sure what vendor youre asking about, but there should not be any surprises at the end, itll all be calculated for you up front.

How is the tax and gratuity usually calculated?

Re: How is the tax and gratuity usually calculated?

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