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Just Said Yes July 2021

Venue upcharge

Rebecca, on June 26, 2021 at 2:44 AM Posted in Community Conversations 0 4
In July 2020 we picked a venue and set up a contract involving a payment plan. Part of the contract was that the venue would be paid in full by 30 days before the wedding day. We paid off our venue in full making our final payment In December 2020 (7 months early). On Thursday 6/24 the venue sent an email stating that sales taxes increase on 7/1/21 for the parish. Therefore all events after 7/1/21 will be charged an additional 0.05% towards sales tax. Attached to the email was an invoice stating we now owe $972.74 that needs to be paid in full by Monday 6/28. The venue is closed to the public Friday, Saturday, and Sundays for weddings. Is this a legitimate and/or legal thing to be billed for an additional amount due to increase in sales tax after the services were paid in full? Especially considering the increase in tax is only 9 days before the event and even if we did not already pay in full months early our last payment would have been due an entire month prior to increase in sales tax.
I plan to send an email tomorrow to have a paper trail. Because We both work and are unable to take off Monday I plan to call and speak to someone for clarification on this matter. Just looking for advice considering this came out of left field with a super short notice and we are both shocked and not sure how to go about handling this matter

4 Comments

Latest activity by Stacey, on June 26, 2021 at 9:42 AM
  • C
    Master January 2019
    Cassidy ·
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    I’m in now way an expert in this. But I would say yes a tax increase would make your bill more. Even after signing the contract. Your venue has no control over the tax rate.
    Maybe a tax expert will chime in. But it seems legit.
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  • C
    Master January 2019
    Cassidy ·
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    With that being said the amount seems very high for just .05% I would definitely ask about the amount.
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  • Samantha
    VIP October 2022
    Samantha ·
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    First, I’d do research and see if the taxes really were increased. If you live in the county, was there a recent election with tax increase on the ballot, for example? Lots of times new tax laws will have a number, like “state law 45.66 paragragh 10.1” that sort of thing. I live in Virginia and it’a call “Code of Virginia” for us, the document that has all the laws in it.
    You can check your state and county revenue website, that sort of thing.
    If it is legit, ask the dept of revenue if this tax is retroactive for goods and services you have paid for but have not received.
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  • Stacey
    Super May 2021
    Stacey ·
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    Yes it sounds legit. From an accounting standpoint, the venue can’t recognize your “sale” or revenue until they’ve actually performed the service, which is obviously the day of your wedding. Your prepayment is just likely sitting on their balance sheet somewhere, and they can’t report the revenue until they “earn” it. Obviously nothing they can do about the sales tax increasing. That being said, it would have been a nice gesture for them to eat the difference for couples who were impacted but already paid off.

    Edited to add: I agree with others that the math looks way off here. If the tax rate only went up 0.05%, that would be really small. It looks like they might be incorrectly charging you 5%.

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