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Restaurants & Bars 3

tax on tip?

Sarah | Feb 3, 200212:43 AM

A lot of places add an automatic gratuity for large parties. The last time I ate at a place with a large party, I noticed that they computed the tax based on the food PLUS the 18% automatic tip. That seems wrong to have to pay an 8.25% tax on an 18% tip. Are they just doing it wrong? Or is that legal?

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