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Taxing a Service Charge?

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AMelson

Junior Member
What is the name of your state? IL

I am getting married this weekend, and the reception hall is at a Hotel. They have a 20% service charge and a 6.75% tax which I agree to, thinking that these charges are indipendent of each other. No tax on the service charge, and no service charge on the tax. I come to find out that they are taxing the 20% service charge. I asked what the service charge was for and recieved a vauge answer, that pretty much said it was to pay for the servers. Can this service charge legally be taxed?
 



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