N.C. Gen. Stat. § 105-164.13A
Service charges on food, beverages, or prepared food
Redline — June 1, 2021 → current.View current text →
Current — April 1, 2022
As of June 1, 2021
When a service charge is imposed on food, beverages, or prepared food, so much of the service charge that does not exceed twenty percent (20%) of the sales price is considered a tip and is specifically exempted from the tax imposed by this Article if it meets both of the following conditions:
When a service charge is imposed on food, beverages, or prepared food, so much of the service charge that does not exceed twenty percent (20%) of the sales price is considered a tip and is specifically exempted from the tax imposed by this Article if it meets both of the following conditions:
(1) Is separately stated in the price list, menu, or written proposal and also in the invoice or bill.
(1) Is separately stated in the price list, menu, or written proposal and also in the invoice or bill.
(2) Is turned over to the personnel directly involved in the service of the food, beverages, or prepared food, in accordance with G.S. 95-25.6.
(2) Is turned over to the personnel directly involved in the service of the food, beverages, or prepared food, in accordance with G.S. 95-25.6.
History
(1979, c. 801, s. 76; 1979, 2nd Sess., c. 1101; 1999-438, s. 13; 2013-414, s. 11(b).)
Effect of Amendments. - Session Laws 2013-414, s. 11(b), effective August 23, 2013, substituted "prepared food" for "meals" throughout the section.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.