[Adopted 12-9-1991 (Ch. 37 of the 1978 Code)]
As used in this article, the following terms
shall have the meanings indicated:
A person who for compensation furnishes meals to another,
either for pickup or on the premises of another.
Any prepared food and drink, including alcoholic beverages,
offered or held out for sale which when sold is ready for immediate
consumption whether eaten on or off premises; to include food served
as full course breakfasts, lunches, dinners, short orders, side orders,
sandwiches, soups, salads, desserts and drinks. Foods such as packaged
snacks (potato chips, crackers, etc.) and beverages purchased separately
from a meal are not taxable.
[Amended 12-23-1991]
The application of labor to food to make it ready or available
for immediate consumption.
Any person who purchases a meal.
Any place or thing in the town from which, or in which, meals
are sold, including but not limited to places of business known as
"bars," "cafes," "cafeterias," "coffee shops," "clubs," "delicatessens,"
"diners," "dining rooms," "drive-ins," "eateries," "grills," "lunch
counters," "restaurants," "snack bars," "grocery stores" and "convenience
stores"; also, push carts or other mobile facilities from which meals
are sold or provided.
Any person or caterer who sells meals.
The Treasurer of the Town of Hillsville and any of his/her
duly authorized agents.
[Amended 6-28-2004]
In addition to all other taxes and fees of any
kind now or hereafter imposed by law, a tax is hereby levied and imposed
on the purchaser of every meal served, sold or delivered in the Town
by a restaurant or caterer. The rate of this tax shall be 8% of the
amount paid for the meal. A fractional cent of tax due shall be rounded
to the next higher cent.
In every case, the tax shall be calculated 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 town 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 Town as provided by this article.
The Treasurer may require all prospective sellers
of meals licensed to do business in the town to register for collection
of the tax imposed by this article. Every seller shall make a report
to the Treasurer for each calendar month, showing the amount of charges
collected for meals and the amount of tax required to be collected.
The monthly reports shall be made on forms prescribed by the Treasurer
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 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 tax due and accounted for in the form
of a deduction on his or her monthly return, provided that the amount
due is not delinquent at the time of payment.
If any person whose duty it is to do so shall
fail or refuse to make the report or remit the tax required by this
article within the time and in the amount required, there shall be
added to the tax, by the Treasurer, a penalty in the amount of 10%
of the tax, and interest thereon at the rate of 10% per annum, which
shall be computed upon the tax and penalty from the date such were
due and payable.
If any person whose duty it is to do so shall
fail or refuse to collect the tax imposed under this Article and to
make timely report and remittance thereof, the Treasurer shall proceed
in such a manner as is practicable to obtain facts and information
on which to base an estimate of the tax due. As soon as the Treasurer
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 Treasurer shall
proceed to determine and assess against such person the tax, penalty
and interest provided in this Article and shall notify the person,
by registered mail sent to his or her last known address, of the amount
of such tax, penalty and interest. The total amount thereof shall
be payable ten (1) calendar days after the date such notice is sent.
It shall be the duty of every person liable
for collection and remittance of the taxes imposed by this Article
to preserve for a period of two years records showing 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. The Treasurer
shall have the authority and 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 part thereof.
Whenever any person required to collect and
remit to the town any tax imposed by this Article shall cease to operate
or shall otherwise dispose of his or her business, the tax shall immediately
become due and payable, and the person shall make to the Treasurer
a report and remittance thereof by the first day of the month following
which said business was terminated or disposition made 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.
A.
When 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.
B.
An amount or percentage, whether designated as a tip
or a service charge, that is added to the price of a meal by the seller
and required to be paid by the purchaser is a part of the selling
price of the meal and is subject to the tax imposed by this Article.
The following classes of transactions involving
meals shall not be subject to tax under this Article:
A.
Meals furnished to restaurant 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.
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 sold by a nonprofit educational, religious,
charitable or benevolent organization on an occasional basis as a
fundraising activity.
G.
Any other sale of a meal which is exempt from taxation
under the Virginia Retail Sales and Use Tax Act or administrative
rules and regulations issued pursuant thereto.
A.
It shall be the duty of the Treasurer to ascertain
the name of every seller in the town who is liable for the collection
of the tax imposed by this Article and any person who fails, refuses
or neglects to collect such tax or to make the reports and remittances
required by this Article. The Treasurer may cause to be issued a summons
for such person, and the summons may be served upon such person by
any town police officer in the manner provided by law, and the Treasurer
may seek a conviction in the General District Court of the County
of Carroll, Virginia, or other civil remedy, including injunction,
against such person.
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
Police Department for assistance; and the investigating officer may,
when probable cause exists, cause a summons to be issued to the purchaser
for his violation, returnable to the General District Court as provided
by law.
[Amended 11-11-1996]
Conviction shall not relieve any person from
the payment, collection or remittance of the tax as provided in this
Article. Each violation of any portion of this Article shall be considered
a separate offense, and for each day that said violation occurs, it
shall be considered a separate offense.
The Treasurer may issue regulations for the
administration and enforcement of this Article.
