Question by j: Should a refundable damage deposit be taxed?
I found a venue that charges k for ceremony and receptional rental, chairs, tables, linens, and some decor. She asks 0 for security guards (since there will be champagne) and ,000 for a damage deposit. She has all of this being taxed 6.25% on her contract. I don’t understand why you would tax a refundable deposit. Am I going to get the taxed amount back or just the ,000?? That doesn’t make sense. She also wants non-refundable monthly payments instead of 25% due 90 days prior, 25% 30 days prior, and the remaining balance due at the time of the wedding. Now the deposit isn’t due until 30 days prior but 0 is due up front. I’m not complaining about the price… but the tax? She also did not mention in any of our e-mails or our walk through that a deposit would be necessary. I’m having a small wedding. This place is actually a former house. Soooo… advice? Should I try to get her to make a new payment plan and ask why the deposit is being taxed or is this the norm??
You’re misunderstanding me. The deposit is 0. Non refundable. There is a ,000 DAMAGE deposit that is refundable due 30 days prior to the wedding day. No where does it say it is applied to the final bill. On the contract estimate there is the ,000 for the venue, 00 for the damage deposit, 0 for two security guards. All of this is taxed. She wants 0 up front. The ,000 due 30 days prior. The remaining balance she wants in monthly payments that incur late fees of if not paid by the fifth.
OH and the 0 deposit and monthly payments are NON REFUNDABLE in the event we should cancel six months from now.
A deposit of 25% is required to hold a date and schedule an event at Belle Rose Maison. This deposit is NON-REFUNDABLE after two (2) weeks of reservation.
The remaining balance will be made in equal NON-REFUNDABLE monthly payments due by the 5th of the month. The number of monthly payments will be the number of months from the time you booked until 2 months prior to your event.
The final REFUNDABLE damage deposit is due 1 month prior to the event in the amount of 00. If no damages are incurred, the 00 damage deposit will be returned within 30 days after your event with an invoice for additional expenses or refunds due to any last minute changes such as number of guests.
A final count of those expected to attend is due no later than noon at least five business days prior to the scheduled event. MINIMUM BILLING for any venue is a four hour rental.
Best answer:
Answer by Vegas Jimmy
The deposit is just that, a payment against the final bill, which will be determined after the event. It signals that you are in earnest about the affair, and gives the vendor some operating cash to make purchases in order to produce the affair for you. You may be misunderstanding the wording of the contract a little.
If you paid them 00 and the affair is cancelled within the terms of the contract, they will give you back your 00 and no more. There is no tax, because no SALES transaction took place. On the other hand, if you had your affair then a sales transaction DID occur, and there will be state sales tax added to the total amount purchased, based on that total amount.
Let’s say the total tab was 00, and 5 (6.25% of 00) sales tax was added. Your balance owing is 25 (25 – 00). If you really want to break it down, .50 (6.25% of 00) is the tax on the stuff your FIRST 00 purchased, and the remaining .50 of tax is the tax on the stuff your SECOND 00 purchased. Got it?
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