Salisbury Club, Ltd. v. Virginia Department of Taxation

By JUDGE WILLIAM R. SHELTON

This case was submitted to me for decision on cross motions for summary judgment based on the stipulation of facts. Salisbury filed an application for correction of an erroneous tax assessment pursuant to Va. Code Section 58.1-182.5. The Department of Taxation imposed a sales tax in the amount of $8,879.80 for an assessment based upon gratuities paid to Salisbury employees by members of the private social club.

The stipulation of facts reveals that the Salisbury Club had enacted a by-law providing that the addition of a gratuity to each food or beverage bill would be…