What's with this 18% Service Charge

halfpintny Posted: Nov 11, 2004 12:00 AM

What's with this 18% Service Charge

I'm a little confused....I understand this whole 18% Gratutity Service Charge the halls tack on but is it actually legal to tax me after they add it? Isn't it like getting taxed twice? If the service charge is like a tip shouldn't it be independant of the 8.75% sales tax? Anyone have any input on this?

cmastro25 Posted: Nov 11, 2004 12:19 AM

Re: What's with this 18% Service Charge

I agree with you. I don't believe the service charge should be taxed but I think most halls do it anyway. And some halls tack on extra bogus charges on top of the 18% service, Maitre'D, and Bridal Attendant tips. Arrggh!

halfpintny Posted: Nov 11, 2004 12:28 AM

Re: What's with this 18% Service Charge

Yes...if 18% is supposed to be going toward gratuities...then what's with tipping the bridal attendant and maitre'd? Where exactly is this 18% of mine that they are TAXING going?

cmastro25 Posted: Nov 11, 2004 12:30 AM

Re: What's with this 18% Service Charge

A hall I looked at charged 18% then taxed that, added a $500 House Charge and still expected that you tip the Maitre'D and Bridal Attendant. Geez. What ever happened to getting a tip when you did a great job. Now it's just expected.

NPbride Posted: Nov 11, 2004 08:26 AM

Re: What's with this 18% Service Charge

When I asked my hall about the service charge I was informed it would guarantee me excellent service. What the heck is up with that? You can't guarantee me excellent service just based on a regular price plus a tip? Then I was informed that it's typical to tip the maitre'D $5 pp. Shouldn't that $5 pp guarantee me excellent service? I could go on.... Sorry I turned this into a rant but it's so irritating! Talk about vendors not being able to get enough of your money

halfpintny Posted: Nov 11, 2004 05:17 PM

Re: What's with this 18% Service Charge

I just came back from a day of 'reception hall shopping.' The Riviera was the only one that seemed to tax the service charge. I'm a bit peeved since that is my first choice. Now I'm thinking that the Irish Coffee Pub would be better but the Riviera is sooooooooooo pretty!

jill13bean Posted: Nov 11, 2004 05:22 PM

Re: What's with this 18% Service Charge

OKAY... this is illegal if any hall is doing this....
the way they get around this is they call it a service charge and then they could tax it BUT if you bring this up to them they might take it away rather than start any trouble

they call it a service charge instead of gratuity...this makes it legal to charge tax
did that make any sense?

BOTTOM line... they Are ripping you off

SFP0214 Posted: Nov 22, 2004 08:05 PM

Re: What's with this 18% Service Charge

bump

sarahthegreat Posted: Nov 22, 2004 08:08 PM

Re: What's with this 18% Service Charge

i find it all ridiculous, we are paying so much for everything. our hall is only costing us $62 a head, before tax & gratuity, its still under $80 but yikes...it went up fast.

patti08 Posted: Nov 22, 2004 08:08 PM

Re: What's with this 18% Service Charge

a service charge pays for the staff at most halls.

halfpintny Posted: Nov 22, 2004 10:27 PM

Re: What's with this 18% Service Charge

Well apparently this is the norm at the majority of places. I booked at MPI and they have the 'service charge' as well. I had to just suck it up

dpli Posted: Nov 23, 2004 09:38 AM

Re: What's with this 18% Service Charge

I think most of them do this, based on what people have said on this site, and you may not be able to do much about it. I was not aware that my hall did it until I had to pay the final installment, the week of the wedding. It would probably be in your best interest to ask them before you book. We still got a good price and would have booked with them regardless, because we were very happy with everything, but I would have liked to know this prior to 5 days before the wedding.

salsbride06 Posted: Nov 23, 2004 09:40 AM

Re: What's with this 18% Service Charge

that is illegal that are not allowed to tax a service charge twice and i also believe that it is illegal to tax it all toegther

nferrandi Posted: Nov 23, 2004 10:00 AM

Re: What's with this 18% Service Charge

Posted by salsbride06

that is illegal that are not allowed to tax a service charge twice and i also believe that it is illegal to tax it all toegther

What they're doing is actually NOT illegal; it's a legal loophole. It isn't illegal to tax a service charge just as long as they call it a service charge, not gratuity or tip. We all know that it's really the tip, but as long as it isn't called that in a contract they can infact, and do, tax you on that.

kpny622 Posted: Nov 23, 2004 10:03 AM

Re: What's with this 18% Service Charge

I work for a catering company and the 18% charge is not a 'gratuity' per se, in that it does not go directly to the staff as a 'tip' - that is you responsibility to tip the staff at the end of the wedding (i.e. - banquet manager, bridal attendant, etc.). If it were a tip or sales tax, then yes it would be illegal to tax it. But it's a 'service charge' and can be taxed legally. The service charge goes toward paying administrative expenses and additional labor hired for the event - it's part of the price of the event, so to speak. Mostly all catering halls do this.