Please help out an 07er - hall Q

Apparently, it is legal for a catering hall to tax the 18% when it is called a 'service charge,' but ILLEGAL to tax when it's called a gratuity.

What are you paying? (not a number please, just whether or not your 18% is taxed)

In my hall search, i found this to be about 50/50.

If anyone has any legal info regarding this, please post as well!

THANK YOU!

basically it's like this. if it's called a 'service charge' it is taxable. if it is called a 'gratuity' it is ILLEGAL to tax it.

it kind of amounts to paying two separate charges- the pp charge being just for the food, and the 18% added on to pay the waitstaff.

I am being taxed on the 18% service charge.