Laws, Regulations and Annotations
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Business Taxes Law Guide—Revision 2024
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
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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.