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Southern California Brides

Service Charge and Sales Tax

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01/25/2008 at 01:42 pm

Can anyone tell me whether the service charge that most reception venues charge(20%) is taxed at the local sales tax rate?

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01/25/2008 at 01:45 pm

I also wanted to piggy back off this thread! Sorry!

I'm an out of state bride planning a wedding in Los Angeles. Can vendors waive the sales tax since I am in a state that doesn't charge sales tax normally?

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01/25/2008 at 02:03 pm

I'm pretty sure that the service charge is not taxed.

01/25/2008 at 02:13 pm

Okay, thanks! Most of the websites are so vague it's hard to know what they're actually taxing.

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01/25/2008 at 02:22 pm

Our wedding is down in San Diego and the 20% service charge is not taxed.

01/25/2008 at 02:31 pm

Hmm..I wonder if it differs by city. I'm looking at Robinson Ranch in Santa Clarita and this is what it says:

Sales Tax
All fees, including labor charges, set-up fees, ceremony fees, services charges and food and beverage charges are subject to California state tax.

I always thought gratuity/service charges weren't taxed. So confusing...

01/25/2008 at 05:16 pm

Service charges are a total bitch aren't they?! EVERY single wedding location I've looked into (in Southern CA) taxed the service charge as well. So unfortuantely the answer is yes, the service charge is taxable, and no, I don't think it's waived if you live in a different state!! If you're having your wedding in CA all the CA laws apply to you too.

01/25/2008 at 11:34 pm

The service tax IS taxed. Its so frustrating. Just another chunk of money to factor into the budget. In the beginning of my planning, I remember disgussing the service fees and taxes with a few venues. Each one of them told me that the 'service fee' is not considered a "tip" so therefore it IS taxable. Can you say "cha-ching." Those darn 'hidden' fees.

GeoffyGirl: Determining tax has to do with where the service/product is being held/delivered. This means you will be taxed the local state tax.

03/18/2009 at 04:20 pm

i am finding this out too.  if the 'service charge' is mandatory, then it's taxable.  it's like a double whammy and especially hurts in states like CA that have such high sales tax.  8.75% and it's going up in April.  argggggh

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03/18/2009 at 04:25 pm

Yes. Our venue charges an 18% service charge. And then the total of the cost + the service charged is taxed at 5% (for Massachusetts)

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