Tax
When quoting a price for a banquet, tax is added to the estimated price so that the
Client knows exactly what the function costs. The tax added reflects the percentage
Applicable for the particular governing unit. A few fortunate areas have no sales tax.
Others are taxed by the state, province, county, or municipality in which they are
Located. Some are taxed by all of their governing units, some of their governing units, or
Just one. Still others may have a tourism or convention tax imposed on top of sales tax.
Therefore, taxes on a banquet could range from zero to several percent, depending on
location. A word of caution regarding the amount to be taxed. A few states impose
sales tax on labor if it is charged for separately. In this case, a gratuity might not be
taxed, whereas a service charge could be. In other words, watch the semantics of the tax
laws in your locate.