Is the gratuity charge taxed?

I know most LI places are 15 - 18% gratuity on top of base per person charge. But is that gratuity taxed? Or is only the base amount (pre-gratuity) taxed? Anyone know? Is it different everywhere? THANKS!!

Is the gratuity charge taxed?

We were just talking about that in the Answer to some of your questions.. post. A Service Charge is taxed, a gratuity is not. Most, but not all places we visited charged a Service Charge rather than a gratuity. Its another one of those little things that adds up.

Is the gratuity charge taxed?

According to NY law, if all of the money is passed through to the staff, then it is non-taxable. If they are keeping part of it as a service charge, etc... then it is taxable. You can get a copy of the particular section of the law by calling the state department of taxation and finance. If you are taking the matter up with the hall, don't tip your hand as to what you're getting at. They will tell you the answer that enables them to tax you.

Thank you! This was very helpful! *NM*