[Adopted 7-11-1990 (Ch. 9, Art. XX, of the 1984 Frederick County Code)]
The following words and phrases, when used in this article, shall have the following respective meanings except where the context clearly indicates a different or contrary meaning or there is an express provision to the contrary:
CATERER
A business or person who furnishes meals on the premises of another.
COMMISSIONER
The Commissioner of the Revenue of the County of Frederick, Virginia.
MEAL
Any prepared food and drink, including alcoholic beverages, offered or held out for sale by a restaurant, caterer or other vendor 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.
PURCHASER
Any person who purchases a meal.
RESTAURANT
Any place in the County from which or in which meals are sold, including but not limited to places of business known as "bars," "cafes," "cafeterias," "coffee shops," "clubs," "convenience stores," "delicatessens," "diners," "dining rooms," " eateries," "grills," "lunch counters," "restaurants" or " snackbars."
SELLERS
Any restaurant or caterer selling meals or the person operating such business.
[Amended 5-22-2002[1] ]
In addition to all other taxes and fees of any kind now or hereafter imposed by law, there is hereby levied and imposed on the purchaser of every meal served, sold or delivered in the County by a restaurant or caterer a tax equivalent to 4% of the amount paid for the meal. There shall be no tax if the total amount paid is less than $0.50; on larger amounts, a fractional cent of tax due shall be rounded to the next higher cent.
[1]
Editor's Note: This ordinance provided that it take effect 7-1-2002.
In every case, the tax shall be collected by the seller and paid by the purchaser at the time the charge for the meal becomes due and payable, whether payment is to be made in cash or on credit by means of a credit card or otherwise. The seller shall add the tax to the amount charged for the meal and shall pay the taxes collected to the County as provided in this article.
All amounts collected as taxes under this article shall be deemed to be held in trust by the seller collecting them until remitted to the County as provided by this article.
A. 
The Commissioner may require all prospective sellers of meals operating and/or licensed to do business in the County to register for collection of the tax imposed by this article. Every seller shall make a report for each calendar month, showing the amount of charges collected for meals and the amount of tax required to be collected.
B. 
The monthly reports shall be made on forms prescribed by the Commissioner and shall be signed by the seller. They shall be delivered to the Commissioner on or before the 20th day of the calendar month following the month being reported. Each report shall be accompanied by a remittance of the amount of tax due, made payable to the Treasurer of the County of Frederick, Virginia.
[Amended 5-11-1994]
A. 
There shall be a penalty of 10% added to all meals taxes imposed under the provisions of this article that are unpaid on the due dates as provided in this article.
B. 
In addition to such penalty, interest at the rate of 10% per annum shall accrue and be added to all due and unpaid taxes and penalties beginning with the first day following the imposition of the penalty; provided, however, that for the second and subsequent years of delinquency, such interest shall be at the rate established pursuant to Section 6621 of the United States Internal Revenue Code of 1986, 26 U.S.C. § 6621, as amended, but not less than 10%. Taxes and penalties herein provided shall be assessed and collected in the manner provided by law for the enforcement of the collection of other taxes.
A. 
If any person whose duty it is to do so shall fail or refuse to collect the tax imposed under this article and make timely report and remittance thereof or if the Commissioner has reasonable cause to believe that an erroneous statement has been filed, the Commissioner shall proceed in such manner as is practicable to obtain facts and information on which to base an estimate of the tax due the County and, in connection therewith, shall make such investigations and take such testimony and other evidence as may be necessary; provided, however, that notice and opportunity to be heard shall be given any person who may become liable for the amount owing prior to any determination by the Commissioner.
B. 
As soon as the Commissioner has procured whatever facts and information may be obtainable upon which to base the assessment of any tax payable by any person who has failed to collect, report or remit such tax, the Commissioner shall proceed to determine and assess against such person the tax provided in this article. The Commissioner shall then notify the person, by mail or, if the person has consented to electronic notice, by e-mail, sent to his or her last known address on file, that a statutory amount has been assessed due to failure to file and that he or she must contact the Treasurer to obtain the total amount due, including the assessed amount of penalty and interest. The total amount thereof shall be payable 10 days after the date such notice is given. If a corrected assessment is provided to the Commissioner, the statutorily assessed tax, penalty, and interest would be adjusted.
[Amended 1-9-2013]
It shall be the duty of every person liable for collection and remittance of the taxes imposed by this article to keep and preserve, for a period of two years, records showing all purchases taxable under this article, the amount charged the purchaser for each purchase, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. The Commissioner 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.
Whenever any person required to collect and remit to the County any tax imposed by this article shall cease to operate or otherwise dispose of his or her business, the tax shall immediately become due and payable, and the person shall immediately make a report and remittance thereof.
No seller shall advertise or hold out to the public in any manner, directly or indirectly, that all or any part of a tax imposed under this article will be paid or absorbed by the seller or by anyone else or that the seller or anyone else will relieve any purchaser of the payment of all or any part of the tax.
Where a purchaser provides a tip for an employee of a seller and the amount of the tip is wholly in the discretion of the purchaser, the tip is not subject to the tax imposed by this article, whether paid in cash to the employee or added to the bill and charged to the purchaser's account, provided that, in the latter case, the full amount of the tip is turned over to the employee by the seller.
The following classes of meals shall not be subject to tax under this article:
A. 
Meals furnished by restaurants to employees as part of their compensation when no charge is made to the employee.
B. 
Meals sold by public or private elementary or secondary schools to their students or employees.
C. 
Meals purchased by agencies of federal, state or local governments or by officers or employees thereof while on official business.
D. 
Meals furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, infirm or handicapped or other extended-care facility to patients or residents thereof.
E. 
Meals furnished by a nonprofit charitable organization to elderly, infirm, handicapped or needy persons in their homes or at central locations.
F. 
Meals furnished by a college fraternity or sorority to its members.
G. 
Meals sold by a nonprofit educational, religious, charitable or benevolent organization on an occasional basis as a fundraising activity.
H. 
Meals or food sold from coin-operated vending machines.
I. 
Any other sale of a meal which is exempt from taxation under Virginia Retail Sales and Use Tax Act[1] or administrative rules and regulations issued pursuant thereto.
[1]
Editor's Note: See §§ 58.1-600 through 58.1-639 of the Code of Virginia.
J. 
Nonalcoholic beverages, popcorn, candy and similar confections sold in theaters.
K. 
The County shall not levy any tax under this section upon alcoholic beverages sold in factory-sealed containers and purchased for off-premises consumption.
[Added 10-25-2000]
L. 
The County shall not levy any tax under this section upon food purchased for human consumption as "food" is defined in the Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended, and federal regulations adopted pursuant to that Act, except for the following items: 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.
[Added 10-25-2000]
A. 
It shall be the duty of the Commissioner to ascertain the name of every person operating a restaurant in the County liable for the collection of the tax imposed by this article who fails, refuses or neglects to collect such tax or to make the reports and remittances required by this article. The Commissioner shall have issued a summons for such person or any other person whom the Commissioner believes to have information concerning the collection of the tax imposed by this article and/or the nonpayment of such tax or nonfiling of the reports required by this article, and the summons shall be served upon such person by any County Deputy Sheriff in the manner provided by law.
[Amended 1-9-2013]
B. 
In the event that the purchaser of any meal refuses to pay the tax imposed by this article, the seller may call upon the Sheriff's Department for assistance and the investigating officer may, when probable cause exists, issue the purchaser a summons returnable to the General District Court as provided by law.
[Amended 12-9-1992; 6-13-2007]
Any person violating or failing to comply with any of the provisions of this article shall, upon conviction thereof, be guilty of a Class 1 misdemeanor punishable by a maximum fine of $2,500. Conviction shall not relieve any person from the payment, collection or remittance of the tax as provided in this article. Each violation or failure shall be a separate offense.