Is the 18% a tip?
A restaurant adds eighteen percent for big parties and the owner calls it the servers' tip; Dana and Sal explain why a charge the restaurant adds is part of the selling price and carries retail sales tax and retailing B and O.
Transcript
Linh We add eighteen percent for big parties. That's the servers' tip, right?
Dana Not to the state. If the restaurant adds it, it's taxable.
Sal A tip the customer freely chooses isn't taxed. A charge the restaurant adds is part of the selling price, so it carries retail sales tax and retailing B and O.