This depends on the state.
I've done this in California (for sales tax calculations only) and had the waitstaff argue. it's not worth it if it's a dollar or 2 esp if the waitrons are stupid which they typically are.
Also the whole 18% tip destroys the whole concept of tipping for service but is not necessarily illegal or against the rules.
In California sales tax is collected by board of equalization.
http://www.boe.ca.gov/pdf/pub113.pdf
If the coupon is "third party" e.g. (manufacturer) sales tax is charged on the full amount. If the coupon comes from the restaurant itself I would say it's not 3rd party and sales tax should be charged on the discounted amount.
I am sure this could be argued but the entertainment and restaurant.com coupons don't seem to be 3rd party.
Originally Posted by
JSteele
Nothing annoys me more, yet falls just short of risking an argument with the waitstaff.
I will use a Restaurant.com certificate, or an Entertainment book coupon, and they will calculate tax on the pre-discount amount. Then, they will add tax and mandatory tip on the pre-discounted amount plus tax!
Difference is about $5. Now I know that tax doesn't apply to coupon's, except when they are being reimbursed by a manufacturer. We know that Restaurant.com and Entertainment arnt' reimbursing restaurants for the coupons/certificates.
Has anyone ever challenged a restaurant on this shady practice?