“Dear PoPville,
DC tax question for you….I’m planning a client event and one of the new venues on the SW waterfront are trying to tell me that ‘services charges’ are taxable. We’re talking about a $20K event and it blows my mind that the sales manager is telling me this. So, like when you go to a restaurant and your tab is $20…that includes tax. You put ‘service charge or gratuity’ of $4 and the final is $24. In the case if this venue, they are putting 10% tax on the $4.
D.C. Municipal Regulations (Last Updated: June 21, 2017)
Title 9. TAXATION AND ASSESSMENTS
Chapter 9-4. SALES AND USE TAXES
“Charges for room service and other service charges in connection with the serving of food or beverages (including alcoholic beverages) in hotels, motels, inns, cafes, bars, and similar establishments where food or drink are served shall be subject to tax under § 116 of the Act.”
You heard of this before? I’ve been here 10 years, thrown events and have never been charged this. Any help is appreciated.”
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