Sales tax

if my contract price per person is 75.00, is the 18% gratuity added to that and THEN the 8.625% nassau county sales tax? or is the sales tax on the 75.00 only? Please help, I'm calculating my final count

I think from what I read the sales tax is on the base price only, not on the gratuity. So you can add your gratuity amt and tax rate together and multiply your base price by it, i.e., 75 x 1.26625 = total cost w/tax and grat.

I think.

I think it's the sales tax after gratuity is added - most of the halls I looked at used that formula...

Check the contract it should be outlined there

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Posted by Rachel1013

You should really call your catering hall and ask this question. The impression I got from my hall is that the gratuity or as they call it 'service charge' is taxed. The reasoning is because it's not gratuity, it's service tax, lol. I was kinda annoyed, but whatever.

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i totally agree

Ok yes, the sales tax is added to the gratuity. I called my hall and they tried to brush me off like 3x. The whole time since they got our payments they've been doing this. I wouldn't recommend them to anyone after how they treated us. FH in the past has left several calls for our banquet manager, none of which were returned.

It's not even that I care whether the sales tax is added to the gratuity that much, but it's just the way they they're so rude to me that gets me. They weren't the only LI vendor like this either. But when my wedding is 2 weeks away, I expect them to wait until I finish asking my question before they give me an answer that doesn't properly address my question. Ugh.

ladies,

New York State requires that service charge is taxed. it is not the banquet hall that decides what gets taxed and what doesnt. sales tax laws are determined by the federal, state and county laws!

the way it was explained to me - service charge goes to the house to pay the salaries of all employees - the chef, the kitchen staff, the cleaning staff, the waitstaff, etc.

gratuity goes to a person - the bridal attendant, the maitre 'd, the banquet manager, etc. a gratuity is not required to be taxed.