NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 1101

SENATE BILL 961

 

 

AN ACT TO CLARIFY THE SALES TAX ON LABOR SERVICE CHARGES AT ESTABLISHMENTS SERVING FOOD, BEVERAGES, OR MEALS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 105-164.13A is rewritten to read:

"§ 105 164.13A.  Service charges on food, beverages, or meals. — When a service charge is imposed on food, beverages, or meals, so much of said service charge as does not exceed fifteen percent (15%) of the sales price is specifically exempted from the tax imposed by this Article when the service charge:

(1)        is separately stated in the price list, menu, or written proposal and also in the invoice or bill; and

(2)        is turned over to the personnel directly involved in the service of the food, beverages, or meals, in accordance with G.S. 95-25.6. Such service charge shall be considered to be a tip."

Sec. 2.  This act shall become effective October 1, 1980.

In the General Assembly read three times and ratified, this the 17th day of June, 1980.