(Closed) SoCal Brides – California Sales Tax

posted 9 years ago in Parties
Post # 3
Member
662 posts
Busy bee
  • Wedding: June 2010 - The Mountain Terrace, Woodside, CA

Ohhh, I don’t have an answer for you, but am super curious about this myself.  The 9.25% tax (at least in my area of California) is WAY to high now, and when we’re talking wedding prices, 1% or even 0.5% above your budgeted and contract specified amount is a LOT!  I would have issue too, but I have no idea what is legal in this case.

Post # 4
Member
317 posts
Helper bee
  • Wedding: August 2011

Not sure!!

Post # 5
Member
95 posts
Worker bee
  • Wedding: July 2010

i’m pretty sure that they have to charge you the tax that is effective on the day you recieve the service per state tax law, regardless of the amount on the contract. :/

Post # 6
Member
666 posts
Busy bee
  • Wedding: March 2010

I have a catering contract that specifically states I am being offered the 2008 rate, because it was 2008 when I booked my event.  My tax will be the same.  I don’t see why the tax rate should increase after the contract is signed.  Isn’t that why people were supposed to rush out and buy a car before the tax hike?  I know the lawyers will chime in about the differences between a service and a good, but it’s the kind of logic that might appeal to your caterer.

Post # 7
Member
18 posts
Newbee
  • Wedding: December 1969

I am on the same boat as you are. Although I signed the contract way before the tax hike, I am going to be charged the higher rate because according to the banquet manager, "the tax is not based on when you signed the contract, rather, when the service is performed." He told me that some brides even offered to pay the bill in full before the day of the tax hike to avoid the tax increase, but they could not do it since the service will be performed after.

Post # 9
Member
135 posts
Blushing bee

I had the same issue and ended up paying the new sales tax for the same reasons stated above. The tax charged is based on the date the services is rendered so even though the contract was signed last year, we’re responsible for the difference because the state raised taxes recently. As a wedding vendor myself, I understand because we have to pay taxes based on 2009 earnings and the state doesn’t care when you signed a contract. That being said, we’ve decided to take the hit and honor the previously agreed upon total $ amount for clients that booked us prior to the tax hike. 

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