how much is tax?How much do you tip? DDE qs...

[happypooh]

I'm trying to figure out whether to do the DDE or DDP and need to know how much is tax and whether they minus 20% from the total bill inc tax or before it? We usually tip 15%, more if stellar service and I wondered what others do....we're going for free dining in sept but have a trip soon and figured if we do the DDE we would eat less...and maybe spend a little less...thoughts?

 

[kaytieeldr]

Tax is 6.5% at most restaurants, 7% at the All Star Resorts and possibly Animal Kingdom Lodge (different county).
The discount is taken on the price of the food. For example, if your total food purchase is $100, you actually only pay $80 of that... but you pay $6.50 tax.
You pay sales tax on the original cost.
Most people (from what I’ve read, could be lots more people NOT stating what they do) just tip the discount, i.e. 20%.

 

[MinnieFan4ever]

We always base our tip on the total BEFORE to DDE discount. The server should not get short changed because we get a discount.

 

[clkelley]

We just tip the discount back.

However, on the discount the tax is calculated on the discounted amount. I don't think they can tax you on money you don't pay.

For example a $100 check would be $80 + 6.5% tax. (or $85.20)

I would have to double check some receipts, but I think that's correct.

 

[Cheshire Figment]

Tax is 6.5% at most restaurants, 7% at the All Star Resorts and possibly Animal Kingdom Lodge (different county).
The discount is taken on the price of the food. For example, if your total food purchase is $100, you actually only pay $80 of that... but you pay $6.50 tax.
You pay sales tax on the original cost.
Most people (from what I’ve read, could be lots more people NOT stating what they do) just tip the discount, i.e. 20%.

Your information is not correct on several levels.

The basic Sales Tax rate in Florida is 6.0% and is on most goods and services. The counties have an option, by vote of their residents, to add a surtax of 0.25%, 0.5%, 1.0% or 1.5% to the state rate.

Orange County, which is most of WDW has a surtax of 0.5%, so purchases (including meals) are taxed at 6.5%.

Osceola County, which has the All-Stars Resorts and Wide World of Sports in it, has a 1.0% surtax so purchases at those locations are subject to a 7.0% tax.

Since you are being given an unconditional discount, the Sales Tax is computed on the amount after the discount is taken. This is a lot different than a manufacturer's Coupon.

And, of course, gratuity should always be based on the pre-discounted price.

Mike (CPA Retired)

 

[Maria311]

We always just add back the discount. That works out well. That's 20% on the before discount check and before the tax. I've tried to add up costs and justify the DDP. For us, with FL resident or AP discounts, the DDE card works out to be a better option. This also guarantees that we won't eat too much!!!
Your willpower would have to be mighty strong to turn down appetizers and those desserts at every meal. Once a week maybe, but everyday. yikes!

 

[kaytieeldr]

Your information is not correct on several levels.


Mike (CPA Retired)

Oh, okay, fine.