HB 114 -- SALES/USE TAX:  EXEMPTION FOR CERTAIN GRATUITIES

SPONSOR:  Hickey

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 13 to 0.

This bill allows charges of mandatory gratuities incident to the
serving of food or beverage to be excluded from gross receipts
in the calculation of sales and use tax owed by a seller.

FISCAL NOTE:  Estimated Net Loss to all state funds is expected
to exceed $100,000 in FY 2002, FY 2003, and FY 2004.

PROPONENTS:  Supporters say that sales tax should not be charged
on amounts of mandatory gratuities added to a customer's bill at
a restaurant when no sales tax is charged on regular gratuities
left at the table.

Testifying for the bill was Representative Hickey.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

Missouri House of Representatives
Last Updated November 26, 2001 at 11:42 am