We work with many customers planning business meetings and wedding receptions (and other social events) who do not have experience with events. One of the subjects that we find ourselves talking about a lot is “service charge and sales tax”. In our industry, these two items are the ++ behind a given price.
At The Summit, we charge 20% service charge and 8% sales tax on services such as catering, audio-visual equipment rental, and beverages.
Most of our competitors in Denver apply service charges of 22% to 24%.
The sales tax rate is determined by the state and city (Aurora, in our case).
The Summit provides an estimate that lists the service charge and sales tax totals. However this is not a standard industry practice.
Most hotels and wedding venues quote WITHOUT these two items, so you need to find out how much more you will truly be paying by asking the right questions. Adding 30% to a bill can be a tremendous sum.
So when you are searching for a meeting or wedding venue that fits your budget, be sure to ask about the service charge and sales tax.
Hope this helps save some readers from a stressful surprise!