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(A) Where a purchaser provides a gratuity for an employee of a provider, 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, die full amount of the gratuity is turned over to the employee by the provider.
(B) An amount or percent, whether designated as a gratuity, tip or service charge, that is added to the price of the accommodations by the provider, and required to be paid by the purchaser, as a part of the selling price of the accommodations is subject to the tax imposed by this subchapter.
(1996 Code, § 148-43) (Ord. passed 8-13-2002)