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‘Brunch tax’? Philadelphia restaurant Juno explains this fee. It is legit — and we have the receipts.

The Mexican restaurant's management concedes that the phrase “brunch tax” is misleading and will be changed and explained in writing.

Food on its way to a table at Juno, 1033 Spring Garden St.
Food on its way to a table at Juno, 1033 Spring Garden St.Read moreMichael Klein / Staff

Social media roasted the Philadelphia restaurant Juno over the weekend over what was labeled on a customer’s receipt as a “brunch tax.”

Is brunch tax real or did this place just make it up?” headlined a post on Reddit, as commenters weighed in on the topic.

It’s actually a legitimate charge, though the management of the Mexican-theme restaurant at 1033 Spring Garden St. concedes that the phrase “brunch tax” is misleading and will be clarified.

The brunch in question is Juno’s all-you-can-eat ‘borracha” ($29.92), which includes “endless tacos, nachos, tecates, and house margaritas for 90 minutes,” according to its menu. Alcoholic beverages are limited to 120 ounces per person.

Juno taxes this brunch at 9% — an average of Philadelphia’s 8% sales tax and its 10% liquor tax. The partial receipt that was posted on Reddit showed a $5.39 charge for brunch tax — that would be 9% of $59.84, or the cost of two brunches.

Other sales tax on the receipt applies to additional food and alcohol purchases. The $2.08 listed as “sales tax” on this receipt would cover the cost of a chile relleno and two churros ($26 times 8%).

Manager Dana Canalichio said she sent a note to the original Reddit poster to explain the charge.

To further dissect the receipt: Juno advertises and automatically applies a 20% gratuity, a practice that is becoming increasingly common in the restaurant business.

There’s also a 3% “employee benefit fee.”

Owner Avram Hornik of Four Corners Management explained it is “a dedicated fund to continue to invest in our employees.” The company uses the fund to bring tipped employees to a minimum of $15 an hour. Nontipped employees are paid a minimum of $15 an hour. The company has a weekly bonus pool at every location that goes toward paid time off and health benefits for qualifying employees.