Utah Admin. Code R865-19S-94 - Service Charges, Tips, Gratuities, Cover Charges, and Other Similar Charges Pursuant to Utah Code Ann. Section 59-12-103
(1)
(a)
Restaurants, cafes, clubs, private clubs, and similar businesses must collect
sales tax on service charges, tips, gratuities, cover charges, or other
similar charges included on a patron's bill that are required to be
paid.
(b) Voluntary amounts left on
the table or added to a credit card charge slip are not subject to sales
tax.
(2) A service
charge, tip, gratuity, cover charge, or other similar charge that a restaurant,
cafe, club, private club, or similar business includes on a patron's bill is
presumed to be required unless:
(a) language
on the front of the bill states that the service charge, tip, gratuity, cover
charge, or other similar charge is voluntary and may be increased or decreased
by the patron; and
(b) the language
described in Subsection (2)(a) is in the same font size as the service charge,
tip, gratuity, cover charge, or other similar charge that the restaurant, cafe,
club, private club, or similar business included on the bill.
(3) Charges to enter a restaurant,
tavern, club or similar facility are taxable as an admission to a place of
recreation, amusement or entertainment.
Notes
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