The 18% the hall charges for a service fee doesn't include the 8.625% sales tax?
CLMon7906
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Re: 18% service fee and 8.625% sales tax
no, the 18% is generally gratuity and only for the servers (maybe bartenders as well)
evnme
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Re: 18% service fee and 8.625% sales tax
the svc fee isnt taxed.
MrsWmson2be
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Re: 18% service fee and 8.625% sales tax
ok, thanks. So I would be taxed the 8.625% only on the contract price, and the 18% gratuity would also be calculated based only on the contract price alone (and not with the added tax)?
jellybean1420
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Re: 18% service fee and 8.625% sales tax
they should be calculated seperately based on the contract price.
JohnnysGirl350
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Re: 18% service fee and 8.625% sales tax
I know it seems like a lot right!! My place charges 20% service charge + 8.625% tax.... so much $$$
suven
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Re: 18% service fee and 8.625% sales tax
Posted by MrsWmson2be
ok, thanks. So I would be taxed the 8.625% only on the contract price, and the 18% gratuity would also be calculated based only on the contract price alone (and not with the added tax)?
My service fee was also taxed.
reenielady
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Re: 18% service fee and 8.625% sales tax
If they call the 18% a service fee then it has sales tax on it. If it is a gratuity then it usually doesn't have sales tax. It really depends if the hall is keeping the 'Gratuity' or giving it directly to the staff. It is a very grey area.
joburgio
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Re: 18% service fee and 8.625% sales tax
I'm in VA and am facing the same issue. There is a 21% service charge and then the tax on top of that. Has anyone else found a way to deal with this? To the best of my knowledge the service charge equals or includes the tips. Any ideas on this would be appreciated!!!
GabrielleandJohn
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Re: 18% service fee and 8.625% sales tax
Posted by suven
Posted by MrsWmson2be
ok, thanks. So I would be taxed the 8.625% only on the contract price, and the 18% gratuity would also be calculated based only on the contract price alone (and not with the added tax)?
My service fee was also taxed.
Thank is illegal. You can not tax a service fee.
Kara and Todd
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Re: 18% service fee and 8.625% sales tax
Posted by GabrielleandJohn
Posted by suven
Posted by MrsWmson2be
ok, thanks. So I would be taxed the 8.625% only on the contract price, and the 18% gratuity would also be calculated based only on the contract price alone (and not with the added tax)?
My service fee was also taxed.
Thank is illegal. You can not tax a service fee.
You cannot tax gratuity - You can tax a service fee, as far as I know.