Legal Question in Tax Law in California
gratuity tax
what is gratuity tax?
Asked on 10/30/07, 6:03 pm
1 Answer from Attorneys
Jeb Burton
The Burton Law Firm
Re: gratuity tax
Are you referring to a tax on gratuities (tips)? If so, that is what it is, basically sales tax on the gratuity amount. Restaurants who have a mandatory gratuity (such as on parties of 8 or more), are required to collect tax on the gratuity amount.
Answered on 11/01/07, 2:59 pm