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tax on service fees?

littleseamonkeylittleseamonkey
First Comment
in California-Northern
I just got my banquet check back, and it is showing two separate taxes--one on the entire total, and one on the 20% service fee. I am under the impression that a "service fee," especially as a percentage, is like a built-in gratuity, and therefore cannot be taxed. I want to know, did anyone else have this? Is this normal? I've already emailed my venue to ask if I read it correctly but want to know if any of you have taxes on your service fees. TIA!
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Re: tax on service fees?

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    adgenyaadgenya member
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    edited December 2011
    I think that is standard (at least at all the places I looked at in Sacramento). Ours will look like this: food and drink+service fee= amount. That amount will then be taxed to come up with the final bill.
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    cromero49cromero49
    First Comment
    edited December 2011
    Unfortunately, I think you can tax the service fee. I think it's stupid to, but apparently you can. Another way they stick it to ya.
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    DNichole26DNichole26
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    edited December 2011
    In most states service fees cannot be taxed but it's actually allowed by law in the good ole state of California!  
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    sheRoxyoursoxsheRoxyoursox
    First Comment
    edited December 2011
    Service charges are usually used to cover overhead costs. Things like labor and utilities... the cost of keep the building open and running during you event. That's why they're allowed to tax it, since it's not actually a gratuity. It's frustrating to see that much of an extra percentage added on top of the bill. :-(
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    littleseamonkeylittleseamonkey
    First Comment
    edited December 2011
    Thanks ladies. I actually asked my venue the same and they said that it is taxable, and actually if you tax the whole amount or separate, we get the same total so, no matter. Sometimes I want to move to another state. Oh well, I'm getting married on Saturday!!!
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