Let it first be said that I am a generous tipper. I almost always tip 20% and when it makes my math easier, I will often round up.  For exceptional service, I have even tipped as much as 30%. So, when an establishment (either knowingly or through ignorance) attempts to get me to pay more than what I’m legally obligated to pay, I get a little pissy.

According to § 58.1-3833 County food and beverage tax, Item E (http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+58.1-3833), dining establishments are not allowed to charge tax on top of gratuity.  Those figures should be arrived at separately.  For example, if you go out to eat in Richmond and your subtotal is $10.  Your tax (11%) and tip (let’s be nice and do 20%) should be $1.10 for tax and $2.00 for tip for a total of $13.10. 

Usually, the restaurant isn’t the one at fault, though; it’s the consumer who looks at the bottom line and calculates their tip based upon the total when really it should have been done on the subtotal.  So, the consumer looks at the bill for $11.10 and calculates $2.22 as tip for a total of $13.32.  As you see, it’s not a huge difference, just 22 cents.  But imagine that you have gone out for a fancy dinner with your significant other and your tab is closer to $100.  Again, it’s not going to break the bank but it’s still dishonest.

When I get really steamed about this is when I’m with a large group or during Richmond Restaurant Week (remember, I’m a big tipper anyway) and a standard tip of 18-20% is automatically included.  More often than not, they have calculated that automatic tip based on the total with tax.  This, my fellow consumers, is illegal! You have the right to send that bill back and have your total recalculated based upon the tax laws of Virginia.  It is normally not a huge difference in cost but I have done this on more than one occasion just for the principle of the matter.  Many times, the server was unaware of this law but their manager and definitely the owner of the establishment should be aware of it. 

I am also dismayed by the computerized systems that do this type of calculation automatically. Just such an event occurred to me recently.  I went with a large party to a popular Richmond restaurant.  I paid the whole tab on my credit card with the intention of individually settling up with people later.  The bill exceeded $400.  While the tip wasn’t automatically included, there was a handy-dandy little tip suggestion column at the bottom.  Upon further inspection, the suggested tips were calculated on the subtotal plus tax.  So, while this restaurant didn’t actually break the law by asking me to tip on tax, they did imply that I should.  Who would normally check that amount in that type of situation?

So, next time you eat out, don’t be afraid to whip out your calculators!