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Pennsylvania-Northeastern

Is a service charge taxable?

Does anyone know?  Our venue charges the price pp, a 21% service charge, and 6% PA sales tax.  

I was under the impression that this meant the following:
$10,000 total venue cost (this is just an example)
+ $2,100 (service charge)
+ $600 (tax)
------------------
$12,700

The coordinator at the venue is telling us this:
$10,000 total venue cost
+ $2,100 (service charge)
------------------
$12,100
+ $726 (tax)
------------------
$12,826

I was under the impression that the service charge would not be taxable, but we're being told that it is.  
21811_10151174643987291_1046283999_n_zpsddfa358c Anniversary BabyFruit Ticker

Re: Is a service charge taxable?

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