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2017 SESSION
17101430DBe it enacted by the General Assembly of Virginia:
1. That §§ 58.1-3833 and 58.1-3842 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-3833. County food and beverage tax.
A. Any county is hereby authorized to levy a tax on food and
beverages sold, for human consumption, by a restaurant, as such term is defined
in subdivision 9 of § 35.1-1, not to exceed four eight percent of the amount
charged for such food and beverages. Such tax shall not be levied on food and
beverages sold through vending machines or by (i) boardinghouses that do not
accommodate transients; (ii) cafeterias operated by industrial plants for
employees only; (iii) restaurants to their employees as part of their
compensation when no charge is made to the employee; (iv) volunteer fire
departments and volunteer emergency medical services agencies; nonprofit
churches or other religious bodies; or educational, charitable, fraternal, or
benevolent organizations the first three times per calendar year and, beginning
with the fourth time, on the first $100,000 of gross receipts per calendar year
from sales of food and beverages (excluding gross receipts from the first three
times), 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; (v) churches that serve meals
for their members as a regular part of their religious observances; (vi) public
or private elementary or secondary schools, colleges, and universities to their
students or employees; (vii) hospitals, medical clinics, convalescent homes,
nursing homes, or other extended care facilities to patients or residents
thereof; (viii) day care centers; (ix) homes for the aged, infirm, handicapped,
battered women, narcotic addicts, or alcoholics; or (x) age-restricted
apartment complexes or residences with restaurants, not open to the public,
where meals are served and fees are charged for such food and beverages and are
included in rental fees. Also, the tax shall not be levied on food and
beverages: (a) when used or consumed and paid for by the Commonwealth, any
political subdivision of the Commonwealth, or the United States; or (b)
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; or (c) 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.
Grocery stores and convenience stores selling prepared foods ready for human consumption at a delicatessen counter shall be subject to the tax, for that portion of the grocery store or convenience store selling such items.
This tax shall be levied
only if the tax is approved in a referendum within the county which shall be
held in accordance with § 24.2-684 and initiated either by a resolution of the
board of supervisors or on the filing of a petition signed by a number of
registered voters of the county equal in number to 10 percent of the number of
voters registered in the county, as appropriate on January 1 of the year in
which the petition is filed with the court of such county. The clerk of the
circuit court shall publish notice of the election in a newspaper of general
circulation in the county once a week for three consecutive weeks prior to the
election. If the voters affirm the levy of a local meals tax, the tax shall be
effective in an amount and on such terms as the governing body may by ordinance
prescribe. If such resolution of the board of supervisors or such petition
states for what projects and/or purposes the revenues collected from the tax
are to be used, then the question on the ballot for the referendum shall
include language stating for what projects and/or purposes the revenues
collected from the tax are to be used.
The term "beverage" as set forth herein shall mean alcoholic beverages as defined in § 4.1-100 and nonalcoholic beverages served as part of a meal. The tax shall be in addition to the sales tax currently imposed by the county pursuant to the authority of Chapter 6 (§ 58.1-600 et seq.) of this title. Collection of such tax shall be in a manner prescribed by the governing body.
B. Notwithstanding the
provisions of subsection A of this section, Roanoke County, Rockbridge County,
Frederick County, Arlington County, and Montgomery County, are hereby
authorized to levy a tax on food and beverages sold for human consumption by a
restaurant, as such term is defined in § 35.1-1 and as modified in subsection A
above and subject to the same exemptions, not to exceed four percent of the
amount charged for such food and beverages, provided that the governing body of
the respective county holds a public hearing before adopting a local food and
beverage tax, and the governing body by unanimous vote adopts such tax by local
ordinance. The tax shall be effective in an amount and on such terms as the
governing body may by ordinance prescribe.
C.
Nothing herein contained shall affect any authority heretofore granted to any
county, city or town to levy a meals tax. The county tax limitations imposed
pursuant to § 58.1-3711 shall apply to any tax levied under this section,
mutatis mutandis. All food and beverage tax collections and all meals tax
collections shall be deemed to be held in trust for the county, city or town
imposing the applicable tax. The wrongful and fraudulent use of such collections
other than remittance of the same as provided by law shall constitute
embezzlement pursuant to § 18.2-111.
D. No county which has
heretofore adopted an ordinance pursuant to subsection A of this section shall
be required to submit an amendment to its meals tax ordinance to the voters in
a referendum.
E. C. Notwithstanding
any other provision of this section, no locality shall levy any tax under this
section upon (i) that portion of the amount paid by the purchaser as a
discretionary gratuity in addition to the sales price; (ii) that portion of the
amount paid by the purchaser as a mandatory gratuity or service charge added by
the restaurant in addition to the sales price, but only to the extent that such
mandatory gratuity or service charge does not exceed 20% percent of the sales price; or
(iii) alcoholic beverages sold in factory sealed containers and purchased for
off-premises consumption or 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
nonfactory sealed beverages.
§ 58.1-3842. Combined transient occupancy and food and beverage tax.
A. Rappahannock County and Madison County, by duly adopted ordinance, are hereby authorized to levy a tax on occupancy in a bed and breakfast establishment on which the county is authorized to levy a transient occupancy tax under § 58.1-3819 and on food and beverages sold for human consumption within such establishment on which the county is authorized to levy a food and beverage tax under § 58.1-3833, when the charges for the occupancy of the room or space and for the sale of food and beverages are assessed in the aggregate and not separately stated. Such tax shall not exceed four percent of the total amount charged for the occupancy of the room or space occupied and for the food and beverages. Such tax shall be in such amount and on such terms as the governing body may, by ordinance, prescribe. The tax shall be in addition to the sales tax currently imposed by the county pursuant to the authority of Chapter 6 (§ 58.1-600 et seq.). Collection of such tax shall be in a manner prescribed by the governing body. All taxes collected under the authority of this article shall be deemed to be held in trust for the county imposing the tax.
B. If a bed and breakfast establishment separately states charges for the occupancy of the room or space and for the sale of food and beverages, a transient occupancy tax levied under § 58.1-3819 and a food and beverage tax levied under § 58.1-3833 shall apply to such separately stated charges, as applicable.
C. Any tax imposed pursuant to this article shall not apply within the limits of any town located in such county, where such town now, or hereafter, imposes a town meals tax or a town transient occupancy tax on the same subject. If the governing body of any town within a county, however, provides that a county tax authorized by this article shall apply within the limits of such town, then such tax may be imposed within such towns.
D. This tax shall be levied
only if a food and beverage tax has been approved in a referendum within the
county as provided by subsection A of § 58.1-3833. No county in which the levy
of a food and beverage tax has been approved in a referendum pursuant to
subsection A of § 58.1-3833 shall be required to submit an amendment to its
meals tax ordinance or a further question to the voters in a referendum prior
to adopting an ordinance adopting or amending the tax authorized by this
article.
E.
Nothing herein contained shall affect any authority heretofore granted to any
county to levy a food and beverage tax or a transient occupancy tax.