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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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T


550.0000 Taxable Sales of Food Products—Regulation 1603

Annotation 550.0800

(d) Tips, Service and Cover Charges


550.0800 Tips Which Are Not Applied to Wages. Where a restaurant operator merely collects the tips on behalf of employees and does not apply them against the employees' minimum wages, under circumstances where the customer is not obligated to pay the tip, the amount of such tips is not part of the retailer's gross receipts from the sale of meals. 8/28/53.