[Added 3-12-2002 by Ord. No. 02-7]
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 Commissioner of the Revenue, and any duly designated
deputies, assistants, inspector or other employees.
The Director of Finance, and any duly designated deputies,
assistants, or other employees.
[Added 6-14-2016 by Ord.
No. 16-20]
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.
Any place in or from which food or food products are prepared,
packaged, sold or distributed in the City, 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 designated as breakfast,
lunch, snack, dinner, supper or by some other name, and without regard
to the manner, time or place of service.
Any individual, firm, partnership, corporation, company,
association or any combination of individuals of whatever form or
character.
Any person who purchases a meal.
Any person who sells a meal.[1]
[1]
Editor’s Note: The definition of “Treasurer,”
which immediately followed, was repealed 6-14-2016 by Ord. No. 16-20.
[Amended 2-14-2012 by Ord. No. 12-1; 6-13-2023 by Ord. No. 23-15]
There is hereby levied by the City on each person
a tax at the rate of 6.5% 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.
A.
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 Visually Handicapped 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.
B.
All tax collections shall be deemed to be held in
trust for the City.
A.
The tax imposed under this article shall not be levied
on the following items when served exclusively for off-premises consumption:
(1)
Factory-prepackaged candy, gum, nuts and other
items of essentially the same nature.
(2)
Factory-prepackaged donuts, ice cream, crackers,
nabs, chips, cookies and items of essentially the same nature.
(3)
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.
(4)
Alcoholic and nonalcoholic beverages sold in
factory-sealed containers.
(5)
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.
(6)
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.
B.
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.
C.
The tax imposed hereunder shall not be levied on the
following purchases of food and beverages:
(1)
Food and beverages furnished by food establishments
to employees as part of their compensation when no charge is made
to the employee.
(2)
Food and beverages sold by day-care centers,
public or private elementary or secondary schools or food sold by
any college or university to its students or employees.
(3)
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.
(4)
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.
(5)
Food and beverages furnished by a public or
private nonprofit charitable organization or establishment or a private
establishment that contracts with the appropriate agency of the Commonwealth
to offer meals at concession prices to elderly, infirm, blind, handicapped
or needy persons in their homes or at central locations.
(6)
Food and beverages sold on an occasional basis,
not exceeding five times per calendar year, by a nonprofit educational,
charitable or benevolent organization, church, or religious body as
a fundraising activity, the gross proceeds of which are to be used
by such organizations exclusively for nonprofit educational, charitable,
benevolent or religious purposes.
(7)
Food and beverages sold through vending machines.
[Amended 5-14-2002 by Ord. No. 02-20]
Where a purchaser provides a gratuity for an
employee of a seller, and the amount of the gratuity is wholly in
the discretion of the purchaser, the gratuity 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 gratuity is turned
over to the employee by the seller.
A.
It shall be the duty of every person required by this
article to pay to the City the taxes imposed by this article to make
a report thereof setting forth such information as the Commissioner
may prescribe and require, including 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.
B.
Such reports shall be delivered to the Commissioner
along with the tax required to be collected. Such reports and remittances
shall be made to the Commissioner on or before the 20th day of the
calendar month following the month being reported.
C.
Such records shall be kept and preserved for a period
of five years. The Commissioner or his duly authorized agents 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.
If any person whose duty it is to do so shall
fail or refuse to remit the taxes required to be collected under this
article within the time and in the amount specified in this article,
there shall be added to such taxes a penalty in the amount of 10%
thereof, or the sum of $10, whichever shall be greater; provided,
however, that the penalty shall in no case exceed the amount of the
tax due; and interest thereon at the rate of 10% per annum which shall
be computed upon the taxes and penalty from the date such taxes were
due and payable.
If any person whose duty it is to do so shall
fail or refuse to collect the tax imposed and levied by this article
and to make within the time provided in this article the report and
remittance required, the Commissioner shall proceed in such manner
as he may deem best to obtain facts and information on which to base
an estimate of the tax due. As soon as the Commissioner shall procure
such facts and information as he is able to obtain upon which to base
the assessment of any tax due and payable by any person who has failed
or refused to collect such tax and to make such report and remittance,
the Commissioner shall proceed to determine and assess against such
person such tax and penalty and interest as are provided for in this
article and shall notify such person, by certified or registered mail
sent to such person's last known address, of the amount of such tax,
penalty and interest, and the total amount thereof, including penalties
and interest, shall be payable within 10 days from the date of such
notice.
Whenever any person required to collect and
pay to the City a tax under this article shall go out of business,
dispose of his business, or otherwise cease to operate, any tax payable
under this article to the City shall become immediately due and payable;
and such person immediately shall make a report and pay the tax due.
A.
It shall be the duty of the Commissioner to ascertain
the name and address of every person in the City operating a food
establishment in the City liable for collection of the tax levied
under this article who fails, refuses or neglects to collect such
tax and make the report and remittances required hereunder.
B.
The Commissioner shall turn over to the Director of
Finance all remittances and copies of reports received hereunder within
15 days of receipt thereof.
[Amended 6-14-2016 by Ord. No. 16-20]
C.
The Director of Finance shall have the power and the
duty of collecting the taxes imposed and levied hereunder and shall
cause the same to be paid into the general treasury of the City.
[Amended 6-14-2016 by Ord. No. 16-20]
A.
Any person willfully failing or refusing to file a
return as required under this article shall, upon conviction thereof,
be guilty of a Class 1 misdemeanor, except that any person failing
to file such a return shall be guilty of a Class 3 misdemeanor if
the amount of tax lawfully assessed in connection with the return
is $1,000 or less. Any person violating or failing to comply with
any other provision of this article shall be guilty of a Class 1 misdemeanor.
B.
Except as provided in subsection A above, any corporate or partnership officer, as defined in the 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 imposed by law, be guilty of a Class 1 misdemeanor.
C.
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.
D.
Punishment for Class 1 and Class 3 misdemeanors shall
be as provided in the Code of Virginia (1950), as amended.
