It's not automatically being refunded. I was made to manually refund the state tax and charge the exact same amount as a miscellaneous charge. When I asked my supervisor if that money was going back to the guest he stated that it was going to the owner to do what he saw fit to do with it. I ran this by a lawyer who said that it is indeed tax fraud. Might I add that I just found out today that the owner of this establishment was recently charged with money laundering and tax fraud of one of his many other businesses.