Finance
Department of Taxation
Department of Taxation
Mandate 214
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Mandate Title:
Gratuities or Service Charges on Meals
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Purpose of legislation
Eliminates the retail sales and use tax and local meals tax on gratuity or service charges that are mandatory or automatically added to the price of a meal by the dealer, provided the service charge does not exceed 20% of the cost of the meal.
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| Legislation mandating a change | Chap 602 (2006) |
| VAC chapters to be amended |
23 vac 10 - 210 : Retail Sales and Use Tax
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| Associated Regulatory Actions | No regulatory action has been filed. |
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Closing Explanation
The Department of Taxation intended to promulgate a regulation interpreting the legislation, but since it is not aware of any issues needing clarification, it has decided to not promulgate a regulation.
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