(A) Where a purchaser provides a gratuity for an employee of a seller, and the amount of the gratuity is wholly in the discretion of the purchaser, the gratuity is not subject to the tax imposed by this subchapter, whether paid in cash to the employee or added to the bill and charged to the purchaser’s account; provided that, in the latter case, the full amount of the gratuity is turned over to the employee by the seller.
(B) An amount or percent, whether designated as a gratuity, tip or service charge, that is added to the price of the food and beverages by the seller, and required to be paid by the purchaser, as a part of the selling price of the food and beverages is subject to the tax imposed by this subchapter.
(1997 Code, § 62-114) (Ord. passed 6-8-2004; Am. Ord. passed 5- -2022)