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tax on service charge?? from reception place

newbebride Posted:

tax on service charge?? from reception place

How can they charge me TAX on the service charge? I've never heard of that, is it legal ? Can I argue about it???? HELP!

SFP0214 Posted:

Re: tax on service charge?? from reception place

don't get me started on this!!!!!!!!! There was post awhile ago about this ... Ican't remember what they said... let me try to find it.

SFP0214 Posted:

Re: tax on service charge?? from reception place

I bumped it.. I don't think that it answers anything and probably adds to your frustration.. Sorry.. This sucks

newbebride Posted:

Re: tax on service charge?? from reception place

thanks for looking anyway..but I still think it must be illegal? Why should I pay tax on service charge???? it's craxzzzzzzy..very upset.
joburgio Posted:

Re: tax on service charge?? from reception place

PLEASE help me with this one! I am marrying in Virginia, but am facing the same question. How in the world is this legal????

ali120206 Posted:

Re: tax on service charge?? from reception place


Posted by joburgio

PLEASE help me with this one! I am marrying in Virginia, but am facing the same question. How in the world is this legal????



You can tax a 'service charge' but not a 'gratuity'. It's all in the wording.

It doesn't go to the staff usually as a tip, it goes to pay their normal wages.
Kara and Todd Posted:

Re: tax on service charge?? from reception place

I don't think it's really all in the wording - it's all in how it is used. If it's a service charge and it goes directly the RH (NOT to the wait staff in tips), then it gets taxed - b/c it's considered a fee for the services of hall and subject to sales tax.

If it's gratuity going to the wait staff, it isn't taxed. (Just as a tip in a restaurant isn't taxed).

Remember, the RH isn't pocketing the tax... though it's annoying if they are pocketing this service charge and then you have to tip the wait staff even more (PLUS pay tax on the service charge!)

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