Sales Tax Question

[126coupe]

I am putting together a 35 year High School Reunion and have a question about sales tax. The Caterer is charging sales tax on the food, is this OK? am I getting screwed?
He is charging tax on the gratuity also? also tax on a set up fee of $500.00?

[GH85Carrera]

It sounds like he got caught not charging tax once so now he charges tax on everything.

And or he sees a way to make some extra cash. Sales tax on a gratuity is something only a politician would think is logical. Of course you are in the land of taxes.

[stomachmonkey]

http://www.boe.ca.gov/pdf/reg1603.pdf

Assume attendes of the reunion will be paying to attend.

"(d) PLACES WHERE ADMISSION IS CHARGED.
(1) GENERAL. Tax applies to sales of food products when sold within, and for consumption within, a place the entrance to which is subject to an admission charge, during the period when the sales are made, except for national and state parks and monuments, and marinas, campgrounds, and recreational vehicle parks.
Regulation 1603. (Contd.) (2) DEFINITIONS.
(A) “Place” means an area the exterior boundaries of which are defined by walls, fences or otherwise in such a manner that the area readily can be recognized and distinguished from adjoining or surrounding property. Examples include buildings, fenced enclosures and areas delimited by posted signs.
(B) “Within a place” means inside the door, gate, turnstile, or other point at which the customer must pay an admission charge or present evidence, such as a ticket, that an admission charge has been paid. Adjacent to, or in close proximity to, a place is not within a place."

(g) TIPS, GRATUITIES, AND SERVICE CHARGES.
This subdivision applies to restaurants, hotels, caterers, boarding houses, soda fountains, drive-ins and similar establishments.
An optional payment designated as a tip, gratuity, or service charge is not subject to tax. A mandatory payment designated as a tip, gratuity, or service charge is included in taxable gross receipts, even if the amount is subsequently paid by the retailer to employees.

[wdfifteen]

Originally Posted by stomachmonkey

(1) GENERAL. Tax applies to sales of food products when sold within, and for consumption within, a place the entrance to which is subject to an admission charge, during the period when the sales are made, except for national and state parks and monuments, and marinas, campgrounds, and recreational vehicle parks.

So all you have to do is hold your reunion at a trailer park and it will be tax free!
This just ticks me off. There are no principles in our tax codes - any of them. If you have a frikkin lobbyist you can get yourself exempted from taxes and stick everyone else with the cost of government. If you hold your event at a marina, a campground, or an RV park you aren't taxed? A state park, that is owned and staffed by taxpayers? WTF kind of logic is that?? They should have to pay MORE!

[ben parrish]

All standard....