Maryland Sales Tax on Tips
- May 24, 2012 | Susan McLain

Maryland Senate Bill 852, effective July 1, 2012 imposes a sales and use tax on “…a mandatory gratuity or service charge in the nature of a tip for serving food or any type of beverage to a group of more than 10 individuals….” The sales and use tax rate is 6%.
The sales and use tax rate for the taxable price of an alcoholic beverage is 9%.
NOTE: Bars and restaurants both pose special challenges for auditors. Read about the Undercover Pour Test on the Audit blog at salestaxsupport and learn more!
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