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Sales Tax Question for RH

Susan2010 Posted:

Sales Tax Question for RH

I just got a bill from my reception hall for a payment. They charge a 20% sevice charge in addition to the cost per plate. I get that part, but when the are calculating the sales tax, they are charging me sales tax not just on the cost of the plate but also on the service change. Its only a difference of about 250 total but still, is that legal to put sales tax on a service charge? Anyone know the answer to this?
TIA!
KrisCharl Posted:

Re: Sales Tax Question for RH

that def doesn't seem legal.. but i'm not a lawyer

CantWait2Wed Posted:

Re: Sales Tax Question for RH

It doesn't seem legal but it is. They all do this. My FH literally read the tax code to be sure!

leesah85 Posted:

Re: Sales Tax Question for RH

i think as long as they call it a 'service charge' and not 'gratuity' then it is legal

christine2010 Posted:

Re: Sales Tax Question for RH

Yep, they are alloweed to do that. When I asked my hall about it, they said we are not expected to tip the people who are paid out of that service charge additionally. (coat check, wait staff, valet parking, bridal attendant, etc.)

FutureJOC Posted:

Re: Sales Tax Question for RH

Posted by leesah85

i think as long as they call it a 'service charge' and not 'gratuity' then it is legal


yup... this is how ours is calculated as well.
halfbaked Posted:

Re: Sales Tax Question for RH

As immoral as it may be, it's still legal and I guarantee you all paid the same tax. Boo RHs.

annnng Posted:

Re: Sales Tax Question for RH

Honestly.. I just figured it out and it's the same whether u tax before or after the 20%.

Susan2010 Posted:

Re: Sales Tax Question for RH

Thanks everyone- when in doubt ask LIW!

suzie411 Posted:

Re: Sales Tax Question for RH

this is what they do! it's F**ed up,

IMO
FutureMrsPanuch Posted:

Re: Sales Tax Question for RH

thats how they work it... the 'service fee' is added to your contract so it has to be taxed... it s**ks but thats how they get you....

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