[Adopted 6-24-1991]
The following words shall for the purpose of this article have the following respective meanings, except where the context clearly indicates a different meaning:
CATERER
A person who furnishes meals on the premises of another person.
MEAL
Any prepared food and drink ready for human consumption, including alcoholic beverages, offered or held out for sale by a restaurant or caterer for the purpose of being consumed by an individual or group of individuals at one time to satisfy the appetite. All such food and drink shall be included, whether intended to be consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, dinner, supper or by some other name, and without regard to the manner, time or place of service.
RESTAURANT
Any establishment in the Town whose business includes offering to the public meals prepared either for consumption on premises or to carry from the premises for consumption, and for which the owner or operator thereof receives compensation, including but not limited to places or businesses known as bars, cafes, cafeterias, coffee shops, clubs, delicatessens, diners, dining rooms, eateries, grills, lunch counters, restaurants, or snack bars. This definition shall also include convenience stores, service stations and like business establishments which prepare and sell sandwiches, hot dogs, hamburgers, soft drinks and similar food and drink items.
[Amended 10-16-1995; 6-3-2008; 6-19-2017]
In addition to all other taxes of every kind, now or hereafter imposed on meals, there is hereby imposed and levied on each and every meal sold by restaurants and caterers within the Town, as defined herein, a tax equivalent to 7% of the total amount paid for such meals.
No tax shall be payable hereunder on:
A. 
Meals prepared or served by any school, hospital, medical clinic, convalescent home, or home for the aged to their students, patients, residents or employees, or food served to employees in connection with their employment and paid for by the employer.
B. 
Food and beverages sold through vending machines.
C. 
Meals purchased with food coupons issued by the United States Department of Agriculture.
D. 
All nonprofit organizations will be exempt from paying a meals tax.
[Added 6-27-2000]
A. 
Every person receiving any payment for meals with respect to which a tax is levied under this article shall collect the amount of tax hereby imposed from the person paying for such meal at the time payment for such meal is made.
B. 
All money collected as taxes under this article shall be deemed to be held in trust by the seller collecting same until remitted to the Town as provided in this article.
A. 
The person collecting any tax levied under this article shall make out a report upon forms, setting forth information as the Town Treasurer may prescribe and require, showing the amount collected and the tax required to be collected, and shall sign and deliver the same to the Town Treasurer with a remittance of such tax to the Town Treasurer.
B. 
Such reports and remittances shall be made on or before the 20th day of the month following each calendar month and covering the amount of tax collection during the preceding calendar month.
C. 
A person required to collect the tax levied under this article shall preserve for a period of two years records showing the meals sold upon which such tax is imposed, the amount charged for each, the date of sale, the tax due and the tax collected.
If any person shall fail or refuse to remit to the Town Treasurer the tax required to be collected and paid under this article within the time and in the amount specified in this article, there shall be added to such tax by the Town Treasurer a penalty of 10%, or $10, whichever is greater; and if the tax shall remain delinquent and unpaid for a period of one month from the date the same is due and payable, there shall be in addition added to such tax by the Town Treasurer interest at the rate of 1% per month on the amount of the tax for each month or portion thereof from the date upon which the tax is due as provided in this article.
If any person required to collect and remit the tax imposed by this article fails to file a statement and a remittance of it or the Town Treasurer has reasonable cause to believe that an erroneous statement has been filed, the Town Treasurer may proceed to determine the amount due the Town and in connection therewith shall make investigation and take testimony and other evidence as may be necessary; provided, however, that notice and opportunity to be heard be given any person who may become liable for the amount owed prior to any determination by the Town Treasurer.
Whenever any person required to collect and pay to the Town a tax under § 148-40 shall quit or otherwise dispose of his or her business, any tax under the provision of this article shall become immediately due and such person shall immediately make a report and pay the tax due.
It shall be the duty of the Town Treasurer to ascertain the name of every person who is a caterer or is operating a restaurant in the Town liable for the collection of the tax levied by § 148-40. The Town Treasurer shall have the power to adopt rules and regulations not inconsistent with the provisions of this article for the purpose of carrying out and enforcing the payment, collection and remittance of the tax herein levied, and a copy of such rules and regulations shall be on file and available for public examination in the office of the Town Treasurer. Failure or refusal to comply with any rules and regulations promulgated under this section shall be deemed a violation of this article.
Any person violating or failing to comply with any of the provisions of this article, shall upon conviction thereof, be fined not more than $1,000, or may be imprisoned for a period not exceeding six months or punished by both such fine and imprisonment. Each such violation shall constitute a separate violation. Such conviction shall not relieve any such person from the payment, collection or remittance of taxes, penalties and interest imposed by or provided for in this article.