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K.A.R. 92-19-51

Gratuities, service charges and minimum charges.

Official textus-ks/regssos.ks.govlast amended
Summarize

# (a)

Each cover charge or minimum charge entitling the customer to receive entertainment, recreation, amusement, or food, meals or drinks furnished by any place where food, meals or drinks are regularly sold to the public, whether listed separately on a bill or collected as an admission fee or fixed charge shall be subject to sales tax.

# (b)

Each retailer shall include in the total selling price of the food, meals or drinks subject to sales tax, any amounts designated as a service charge which are added to the price of food, meals or drinks, even if the charges are made in lieu of tips and are paid over by the retailer in whole or in part to the retailer’s employees.

# (c)

Cash gratuities or gratuities added by the consumer to a bill which are turned over in full to the employee, and gratuities given directly to an employee by a consumer and not pursuant to an arrangement made with the retailer shall not be subject to sales tax.

# (d)

Each retailer shall include in the total selling price of the food, meals or drink subject to sales tax, any gratuities which are mandatory in order for a consumer to receive food, meals, drinks or service, even though a portion or all of the mandatory gratuities collected may be paid over by the retailer to the retailer’s employees.

# (e)

Each retailer shall include in the total selling price of food, meals or drinks subject to sales tax, any gratuities which are required by the retailer to be turned over either in whole or in part by the employees and which are credited by the retailer as a part of the minimum wage of the employees pursuant to federal or state laws, even though a portion or all of the gratuities collected may be paid over by the retailer to the retailer’s employees. (Authorized by K.S.A. 79-3618, implementing K.S.A. 1986 Supp. 79-3602; effective May 1, 1988.)

Amendment history

(Authorized by K.S.A. 79-3618, implementing K.S.A. 1986 Supp. 79-3602; effective May 1, 1988.)

Source: official source document (2022 KAR Book 4, Kansas Secretary of State)

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In this article (40 sections)
  1. 92-19-35 · 92-19-35
  2. 92-19-35a · Securities: surety bonds, escrow accounts, and cash bonds.
  3. 92-19-36 · Jeopardy assessments.
  4. 92-19-37 · Natural gas, electricity, heat and water; sales to…
  5. 92-19-38 · Propane gas, LP-gas, coal, wood, and other fuel sources;…
  6. 92-19-39 · 92-19-39
  7. 92-19-40 · 92-19-40
  8. 92-19-41 · 92-19-41
  9. 92-19-42 · 92-19-42
  10. 92-19-43 · Tax due upon registration of vehicle by dealer; exception;…
  11. 92-19-44 · Sampling methods.
  12. 92-19-45 · Audit facilities.
  13. 92-19-46 · Selling price.
  14. 92-19-47 · 92-19-47
  15. 92-19-49 · 92-19-49
  16. 92-19-49a · 92-19-49a
  17. 92-19-49b · Goods returned when a sale is rescinded.
  18. 92-19-49c · Refund applications; refund claims; required forms.
  19. 92-19-49d · Review of refund applications; processing of refund claims.
  20. 92-19-50 · 92-19-50
  21. 92-19-51 · Gratuities, service charges and minimum charges.
  22. 92-19-52 · Agency relationships; direct purchases.
  23. 92-19-53 · Consumed in production.
  24. 92-19-54 · Ingredient or component part.
  25. 92-19-55 · 92-19-55
  26. 92-19-55a · 92-19-55a
  27. 92-19-55b · Operating leases.
  28. 92-19-56 · 92-19-56
  29. 92-19-57 · Sales tax on motor fuels, special fuels, liquefied…
  30. 92-19-58 · Revenue rulings.
  31. 92-19-59 · Private letter rulings.
  32. 92-19-61 · 92-19-61
  33. 92-19-61a · Retailers’ responsibility to collect sales tax; presumption…
  34. 92-19-62 · Warranties, service and maintenance contracts.
  35. 92-19-63 · Limitations.
  36. 92-19-64 · 92-19-64
  37. 92-19-64a · Responsible individuals.
  38. 92-19-65 · Medical equipment and supplies.
  39. 92-19-66 · Contractors, subcontractors and repairmen; purchases of…
  40. 92-19-66a · 92-19-66a
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