[Adopted 8-28-2000 (Ch. 62, Art. IV of the 1994 Code); amended in its entirety 6-10-2013]
The following words and phrases, when used in this article, shall have, for the purposes of this article, the following respective meanings except where the context clearly indicates a different meaning:
- The furnishing of food, beverages, or both, on the premises of another, for compensation.
- The Treasurer or designee.
- All food, beverages, or both, including alcoholic beverages, purchased in or from a food establishment, whether prepared in such food establishment or not, and whether consumed on the premises or not, and without regard to the manner, time or place of service.
- FOOD ESTABLISHMENT
- Any place in or from which food or food products are prepared, packaged, sold or distributed in the Town, including but not limited to, any restaurant, dining room, grill, coffee shop, cafeteria, cafe, snack bar, lunch counter, convenience store, movie theater, delicatessen, confectionery, bakery, eating house, eatery, drugstore, ice cream/yogurt shops, lunch wagon or truck, pushcart or other mobile facility from which food is sold, public or private club, resort, bar, lounge, or other similar establishment, public or private, and shall include private property outside of and contiguous to a building or structure operated as a food establishment at which food or food products are sold for immediate consumption.
- Any prepared food or drink offered or held out for sale by a food establishment for the purpose of being consumed by any person to satisfy the appetite and is ready for immediate consumption. All such food and beverage, unless otherwise specifically exempted or excluded herein, shall be included, whether intended to be consumed on the seller's premises or elsewhere, whether designed as breakfast, lunch, snack, dinner, supper or by some other name, and without regard to the manner, time or place of service.
- The Treasurer and any duly designated deputies, assistants, inspector or other employees.
There is hereby imposed and levied by the Town on each person a tax at the rate of 8% on the amount paid for meals purchased from any food establishment, whether prepared in such food establishment or not, and whether consumed on the premises or not.
Every person receiving any payment for food with respect to which a tax is levied hereunder shall collect and remit the amount of the tax imposed by this article from the person on whom the same is levied or from the person paying for such food at the time payment for such food is made; provided, however, no blind person operating a vending stand or other business enterprise under the jurisdiction of the Department for the Blind and Vision Impaired and located on property acquired and used by the United States for any military or naval purpose shall be required to collect or remit such taxes. All tax collections shall be deemed to be held in trust for the Town.
For the purpose of compensating sellers for the collection of the tax imposed by this article, every seller shall be allowed 3% of the amount of the tax due and accounted for, in the form of a deduction on such seller's monthly return; provided that the amount due is not delinquent at the time of payment.
The tax imposed under this article shall not be levied on the following items when served exclusively for off-premises consumption:
Factory-prepackaged donuts, ice cream, crackers, nabs, chips, cookies, candy, gum and nuts and other items of essentially the same nature.
Food sold in bulk: for the purposes of this provision, a bulk sale shall mean the sale of any item that would exceed the normal, customary and usual portion sold for on-premises consumption (e.g., a whole cake, a gallon of ice cream); a bulk sale shall not include any food or beverage that is catered or delivered by a food establishment for off-premises consumption.
Alcoholic and nonalcoholic beverages sold in factory-sealed containers.
Any food or food product purchased with food coupons issued by the United States Department of Agriculture under the food stamp program or drafts issued through the Virginia Special Supplemental Food Program for Women, Infants, and Children.
Any food or food product purchased for home consumption as defined in the Federal Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended, except hot food or hot food products ready for immediate consumption. For the purposes of administering the tax levied hereunder, the following items whether or not purchased for immediate consumption are excluded from the said definition of food in the Federal Food Stamp Act: sandwiches, salad bar items sold from a salad bar, prepackaged single-serving salads consisting primarily of an assortment of vegetables, and non-factory-sealed beverages. This subsection shall not affect provisions set forth in Subsection C(3), (4) and (5) hereinbelow.
A grocery store, supermarket or convenience store shall not be subject to the tax except for any portion or section therein designated as a delicatessen or designated for the sale of prepared food and beverages.
The tax imposed hereunder shall not be levied on the following purchases of food and beverages:
Food and beverages furnished by food establishments to employees as part of their compensation when no charge is made to the employee.
Food and beverages sold by day-care centers, public or private elementary or secondary schools or any college or university to their students or employees.
Food and beverages for use or consumption and which are paid for directly by the commonwealth, any political subdivision of the commonwealth or the United States.
Food and beverages furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, infirm, handicapped, battered women, narcotic addicts or alcoholics, or other extended-care facility to patients or residents thereof and the spouses and children of such persons.
Food and beverages provided by a public or private nonprofit charitable organization or establishment to elderly, infirm, blind, handicapped or needy persons in their homes, or at central locations.
Food and beverages provided by private establishments that contract with the appropriate agency of the commonwealth to offer food, food products, or beverages for immediate consumption at concession prices to elderly, infirm, blind, handicapped or needy persons in their homes or at central locations.
Food and beverages sold by volunteer fire departments and rescue squads; nonprofit churches or other religious bodies; educational, charitable, fraternal, or benevolent organization, on an occasional basis, not exceeding three times per calendar year as a fundraising activity, the gross proceeds of which are to be used by such church, religious body or organization exclusively for nonprofit educational, charitable, benevolent or religious purposes.
Food and beverages served by churches for their members as a regular part of their religious observances.
Food and beverages served by age-restricted apartment complexes or residences with restaurants, not open to the public, where meals are served and fees are charges for such food and beverages and are included in rental fees.
Food and beverages sold through vending machines.
The tax imposed by this article shall not be levied on:
That portion of the amount paid by the purchaser as a discretionary gratuity in addition to the sale price of the meal; and
That portion of the amount paid by the purchaser as a mandatory gratuity or service charge added by the food establishment in addition to the sales price of the meal, but only to the extent that such mandatory gratuity or service charge does not exceed 20% of the sales price.
It shall be the duty of every seller required by this article to pay to the Town the taxes imposed by this article to register with the Treasurer providing such information as the Treasurer may prescribe.
Every seller required by this article to pay to the Town the taxes imposed by this article shall file a report with the Treasurer within 20 days after the last day of each calendar month on forms prescribed by the Treasurer, signed by such person, reporting all purchases taxable under this article, the amount charged the purchaser for each such purchase, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. Each such report shall be accompanied by a remittance of the amount of the taxes due thereon for the preceding month.
Such records shall be kept and preserved for a period of five years. The Treasurer shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article, and to make transcripts of all or any parts thereof. In such administration and enforcement, the Treasurer shall also have the powers set forth in § 175-16.
State law reference: Penalties and interest on delinquent taxes, Code of Virginia, § 58.1-3916.
When any seller shall fail to make any report or remit the tax required by this article, there shall be imposed, in addition to any other penalties provided in this section, a specific penalty to be added to the tax in the amount of 10%; provided, however, that in no case shall the penalty be less than $10, and such minimum penalties shall apply whether or not any tax is due for the period for which the report was required.
Interest shall accrue at the rate of 10% per annum which shall be computed on the taxes and penalty commencing 30 days from the date the report or remittance is due.
Whenever any person required to collect and pay to the Town a tax under this article shall cease to operate or otherwise dispose of his or her business, any tax payable to the Town shall become immediately due and payable through such date, and the person shall make a report and remittance thereof within 10 days of such date.
The Treasurer is authorized, when any tax becomes delinquent under this article, to cause a civil warrant to be issued for the collection of the tax, penalty and interest as soon as the tax becomes delinquent against the seller or person liable for payment of the tax.
The Town Treasurer shall monitor and oversee the accuracy, timeliness and completeness of the filing of reports and payment of taxes levied under this article. The Town Treasurer shall adopt and promulgate such rules and regulations and such forms not inconsistent with the provisions of this article as deemed necessary for the effective administration of this article.
In administering the provisions of this article, the Town Treasurer may give any seller 10 days' notice to appear before the Town Treasurer, with such books, records and papers as the Town Treasurer may require relating to the seller's business for the taxable period in question. The Town Treasurer may require that such seller or its agents and employees give testimony or answer interrogatories under oath administered by the Town Treasurer respecting the meals provided and the revenues therefrom which are or may be subject to the tax imposed hereby, or the failure to make a report thereof as provided in this article.
Any person willfully failing or refusing to file a return as required under this article or to comply with any other provision of this article shall, upon conviction, be guilty of a class 1 misdemeanor.
Except as provided in Subsection A of this section, any corporate, partnership or limited liability company officer, as defined in Code of Virginia, § 58.1-3906, or any other person required to collect, account for, or pay over the meals tax imposed under this article, who willfully fails to collect or truthfully account for or pay over such tax, or who willfully evades or attempts to evade such tax or payment thereof, shall, in addition to any other penalties provided by law, be guilty of a class 1 misdemeanor.
Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.