Banquet Business

[IllinoisTaxMan]

My client wants to know how to collect the sales tax on foods and liquors sold at the bankquet business.

Would anyone who has clients with bankquet business give me an advice on that?

Thanks in advance.

[kcjenkins]

This is a STATE issue, so the answer depends on the state involved. It may be in your state that the entire bill is subject to sales tax, or it may be that certain portions of the bill are 'exempt'. Remember that is what you look for, what is exempt, rather than what is taxable, because most states say it is all taxable, except when something is exempt. So you are looking for specific exemptions, and you should notify your client IN WRITING, IMHO, citing the code sections, which things and services may be exempt. That lets you off the hook, if he later gets hit with a sales tax audit, and he uses the old 'my accountant told me.....' defense.

[jainen]

>>notify your client IN WRITING, IMHO, citing the code sections, which things and services may be exempt<<

Well, maybe--that might be technically correct. But why can't you just send an exotic dancer around the room with a big hat? You'll get plenty of money to cover whatever the bill comes to.

[kcjenkins]

Might that not depend on what the dancer is doing with that hat, Jainen? :D

[Lion EA]

Do you then have to collect even more sales tax for the exotic dancer?

[joelgilb]

This is a STATE issue, so the answer depends on the state involved. It may be in your state that the entire bill is subject to sales tax, or it may be that certain portions of the bill are 'exempt'. Remember that is what you look for, what is exempt, rather than what is taxable, because most states say it is all taxable, except when something is exempt. So you are looking for specific exemptions, and you should notify your client IN WRITING, IMHO, citing the code sections, which things and services may be exempt. That lets you off the hook, if he later gets hit with a sales tax audit, and he uses the old 'my accountant told me.....' defense.

KC, clearly this is an IL banquet Hall as the writer is Illinios Taxman. (surprised you missed that one btw)

Now in answer to his question, Banquet Halls in IL are taxed the same way as a restaurants at full rate on the food. Since most banquet halls charge so much per person on the food costs, generally the whole bill will be taxed at the Full Local Sales tax Rate, not the drug and food rate from grocery stores.

And in IL there is not sales tax on services, so no tax on the exotic dancer. Of course if she is selling toys or using various items on you during the dance, these will have a sales tax attributed to them (ie candy undies)

[bstaxes]

Candy undies??? Undies are taxed in IL? Maybe we shouldn't wear any.... At least clothes are not taxed in NJ, they tax almost everything else including candy.

[jainen]

>>(ie candy undies)<<

If you're thinking of switching, I do recommend you avoid the peppermints.

[joelgilb]

Candy undies??? Undies are taxed in IL? Maybe we shouldn't wear any.... At least clothes are not taxed in NJ, they tax almost everything else including candy.

hmm are candy undies being taxed in IL because they are candy or because they are clothes. Well in IL we tax both,. so maybe it doesn't matter.

[kcjenkins]

KC, clearly this is an IL banquet Hall as the writer is Illinios Taxman. (surprised you missed that one btw)

Well, actually, I did not miss it, Joel. I just considered that 1) I did not want to just 'assume' that his client was in IL just because of his name. I have clients in at least 12 states, and at the highest, I had them in 19. And 2) I did not want to take the time to look up IL state sales tax laws, just to answer the question, when it is something that he probably needs to become familiar with, and I don't.

As for the 'candy undies', I'm not about to get into that discussion. :blush:

[joelgilb]

As for the 'candy undies', I'm not about to get into that discussion.

Never know, you and your hub might like them! Shame I can't have my wife wear them as I am diabetic. HMMMMM wonder if they have Sugar Free candy undies? :wacko:

And I have clients all over the country too, but not many businesses outside my State of Practice. And, well, I don't have to look up IL tax laws for this one as I am currently still in IL and have actually had a banquet client in IL. So I guess it was easier for me to answer this one anyway.

BUT... MOVE DATE TO LAS VEGAS coming on 7-7-08

YAHOO!!!!!!!!!

No more WINTER!

YUCK SUPER HOT SUMMERS!

[joanmcq]

And in the future, most likely, water rationing. But if your knees are anything like mine, hot summers (and remember NO humidity! you are going to love the lack of humidity) are nothing compared to cold and wet. and in the dry heat, if you wear a wet shirt or hat, or even put a wet towel on your neck, the evaporative cooling effect is marvelous.

[joelgilb]

And in the future, most likely, water rationing. But if your knees are anything like mine, hot summers (and remember NO humidity! you are going to love the lack of humidity) are nothing compared to cold and wet. and in the dry heat, if you wear a wet shirt or hat, or even put a wet towel on your neck, the evaporative cooling effect is marvelous.

Can't wait. Yes bad knees, bad back, allergies, hate even the little humidity in IL, No winter. I think I can do this

And good idea on the wet shirt, but question should it to be a "Wet T-shirt"?

Not sure if anyone would care to see me in one of those...

[joanmcq]

I'm a desert rate and learned that trick in Death Valley. It can be 120 degrees and with a breeze and a wet shirt you will actually get goosebumps from the chill. I know folks that'll put a wet bandana under their hat.

[joelgilb]

I'm a desert rate and learned that trick in Death Valley. It can be 120 degrees and with a breeze and a wet shirt you will actually get goosebumps from the chill. I know folks that'll put a wet bandana under their hat.

You know I could get "Raunchy" and make a lot of comments to your "..wet shirt and goosebumps..." comment

To bad I am a gentleman and can't bring myself to do it.

Besides, my wife would probably kill me if I did.

lol