§ 74-482. Tips and service charges.

(a)

Where a purchaser provides a tip for an employee of a seller and the amount of the tip is wholly in the discretion of the purchaser, the tip is not subject to the tax imposed by this article, whether paid in cash to the employee or added to the bill and charged to the purchaser's account, provided, in the latter case, the full amount of the tip is delivered to the employee by the seller.

(b)

An amount or percent, whether designated as a tip or a service charge, that is added to the price of the meal by the seller and required to be paid by the purchaser is a part of the selling price of the meal and is subject to the tax imposed by this article.

(Code 1988, § 13-287)

(Code 1988, § 13-287)