§ 105-164.13A. Service charges on food, beverages, or meals. - North Carolina Statutes

§105‑164.13A.  Service charges on food, beverages, or meals.

When a service charge isimposed on food, beverages, or meals, so much of the service charge that doesnot exceed twenty percent (20%) of the sales price is considered a tip and isspecifically exempted from the tax imposed by this Article if it meets both ofthe following conditions:

(1)        Is separately statedin the price list, menu, or written proposal and also in the invoice or bill.

(2)        Is turned over tothe personnel directly involved in the service of the food, beverages, ormeals, in accordance with G.S. 95‑25.6. (1979, c. 801, s. 76; 1979,2nd Sess., c. 1101; 1999‑438, s. 13.)