Sales Tax Rate??

I was looking over my venue contract last night, and it says the rate, plus 20%, plus sales tax. Before I call them up, I just wondered if you guys know if it's a NY sales tax rate OR is for the specific area tax rate they use? Like mine is in Mineola and it showed me a different tax rate than NY. I just want to be 100% accurate on what we 'think' we're paying..LOL

Sales Tax Rate??

I think its the NYS tax but I would check with your hall to be sure. Ive been budgeting our pp rate plus 30% (20% grat + 10% tax). I figure Id rather over budget a lil so there are no suprises.

Sales Tax Rate??

If you go on Geotax.com and put in your address it will tell you your exact tax rate for your street address. I use it all the time at work. I do know though that Nassau and Suffolk have the same sales tax rate, so you should only be being charged 8.625% plus your 20% svc fee.

Sales Tax Rate??

The sales tax rate is based on the location of the hall. You can look up to see which county it is located in on the usps website and then use that to figure out the rate.

Sales Tax Rate??

Catering halls add 20% and then tax of 8.625% (long island).
Makes no sense to add gratuity first but they all do it that way.

Sales Tax Rate??

Thank you ladies for clearing this up!

Re: Sales Tax Rate??

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Posted by sandr325

Catering halls add 20% and then tax of 8.625% (long island).
Makes no sense to add gratuity first but they all do it that way.

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why doesn't it make sense? gratuity should be added before tax. you shouldn't have to pay gratuity on taxes.

Re: Sales Tax Rate??

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Posted by sandr325

Catering halls add 20% and then tax of 8.625% (long island).
Makes no sense to add gratuity first but they all do it that way.

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nevermind. i think i get what you saying. they add gratuity and then tax the total with gratutity. yeah that's crazy. they should base gratuity on the cost before taxes. and tax only on the subtotal (before gratuity)

Sales Tax Rate??

They get away with that by calling it a Service Charge (not gratuity). If it says explicitly states 'gratuity' in your contract you can probably get away with not paying them the tax.

Sales Tax Rate??

They tax the service charge bc it's part of the payment and every business is required to pay tax on all monies taken in for events. Service charge is basics,ly what pays the back of the house staff and salaried employees, like banquet manager, kitchen staff, etc