(Closed) Can you apply tax to a service charge in PA?My venue says yes…I dont think so

posted 8 years ago in Reception
  • poll: Can a venue add tax to a service charge in PA?
    Yes : (2 votes)
    100 %
    No : (0 votes)
  • Post # 3
    Member
    4123 posts
    Honey bee
    • Wedding: October 2010

    Ask your local chamber of commerce… this can vary by state and I think by city

    Post # 4
    Member
    5778 posts
    Bee Keeper

    I’m in NJ and we paid a 20% service charge and 7% tax seperately on food/service and alcohol. It was an extra $700. I just looked at our contract to see how they did it. I don’t know about PA,tho.

    Post # 5
    Member
    342 posts
    Helper bee
    • Wedding: April 2010

    Its a bit shady, but depending on how they define a “service charge” (which, btw is not the same as a tip) you can be taxed on it.  I checked with my venue about this as well, and the answer I got (in NY) was that because a service charge was not the same thing as a tip (in that it isn’t discretionary) they were able to tax it, because they would have to tax their servers on that amount of their income.

    Post # 6
    Member
    3871 posts
    Honey bee
    • Wedding: November 1999

    I used to live in PA ever since I was a child but recently moved away but I always thought that there was no tax on food.  But since this is a service charge, it would be taxable.

    I did a quick search and found this.

    http://pittsburgh.about.com/od/taxes/a/pa_taxes.htm

    Sales & Use Tax

    Pennsylvania imposes a 6% state sales tax on taxable goods and services (exemptions from sales tax include food, clothing, drugs, textbooks, resale items and residential heating fuels). A local sales tax of 1% is also collected on the sales of taxable goods and services in Philadelphia and Allegheny counties (for a total of 7% sales tax).

    * Local sales tax on motor vehicles is determined by the resident address of the purchaser, not by the location of the purchase.

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