Texas Attorney General Opinion: H-247 Page: 1 of 3
This text is part of the collection entitled: Texas Attorney General Opinions and was provided to The Portal to Texas History by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
o A Txn AFOrNEY GENERAL
or TEXAS
S' AWurrm. TrcxAs 78711
VOHN L. Rials
February 28, 1974
The Honorable Robert S. Calvert Opinion No. H- 247
Comptroller of Public Accounts
State of Texas Re: Are "service gratuities"
Austin, Texas or tips a part of the sales
price of taxable food and drini
when collected by a restauran
where a group requests to be
billed for the gratuity along w
the other charges and which
gratuity is disbursed by the
restaurant?
Dear Mr. Calvert:
You have submitted two questions to us concerning whether gratuities
or tips are a part of the sales price of taxable food and drinks under the
Limited Sales, Excise and Use Tax Act (1) when billed to and collected from
a function group at its request and then disbursed to the waitresses, etc.,
and (2) when paid directly to waiters and waitresses under circumstances in
which their employer credits the gra tuities against a portion of the state or
federal minimum wage requirement.
The Limited Sales, Excise and Use Tax Act is found as Chapter 20, of
Taxation-General, V. T. C. S. The limited sales tax is imposed as a percental
of "the receipts from the sale at retail of all taxable items . . . " (Art. 20. 0
"Receipts" as defined, in part, by Art. 20. 01(D) to mean the total price of
retail sales without any deduction for labor or service costs. Art. 20. 01 (L),
in defining "Sales Price, " states in subparagraph (2): "The total amount for
which a taxable item is sold includes all of the following: (a) Any services
which are a part of the sale. "
Our attention has been called to a number of decisions involving the lawi
of other states: Anders v. State Board of Equalization, 185 P. Zd 883 (Cal. Al
1947); Green v. Surf Club, Inc., 136 So. 2d 354 (Fla. App. 1961); Youngstownp. 1138
Upcoming Pages
Here’s what’s next.
Search Inside
This text can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Text.
Texas. Attorney-General's Office. Texas Attorney General Opinion: H-247, text, February 28, 1974; (https://texashistory.unt.edu/ark:/67531/metapth270770/m1/1/?q=%22%22~1&rotate=90: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.