Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
T
550.0000 TAXABLE SALES OF FOOD PRODUCTS—Regulation 1603
Annotation 550.0715
(d) TIPS, SERVICE AND COVER CHARGES
550.0715 Gratuity. Voluntary gratuities are not taxable. A check to the customer as follows does not meet the test of voluntary. The total amount received is subject to tax:
Beverage total including tax . . . $XXX.XX
Optional 15% gratuity . . . $XXX.XX
Total . . .$XXX.XX*
* The above totals includes an optional 15% gratuity. You may raise, lower or eliminate this gratuity by telling your server. 8/26/96.