Gratuities related to restaurant activity
Section Number:
455.10
*This information is for Model City Tax Code purposes only
Gratuities charged by or collected by persons subject to the tax imposed by Section ___-455 may be excluded from gross income if:
(1) such charge is separately stated upon the bill, invoice, etc. provided the customer, and such amounts are maintained separately in the books and records of the taxpayer; and
(2) such gratuities are distributed in total to employees of the taxpayer in addition to customary and regular wages.