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1998 SESSION
989361713Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-3819, 58.1-3833, and 58.1-3840 of the Code of Virginia are amended and reenacted, and that the Code of Virginia is amended by adding a section numbered 58.1-625.1, as follows:
§ 58.1-625.1. Collection of transient occupancy and food and beverage taxes.
If any county, city or town elects to have its local transient occupancy tax, food and beverage tax, or both, collected by the Department as authorized pursuant to subsection F of § 58.1-3819 or subsection C of § 58.1-3833, such taxes shall be remitted to the Department in the same manner as the taxes levied pursuant to §§ 58.1-605 and 58.1-606. The Department shall collect such taxes and distribute them to the applicable localities in accordance with the procedures applicable to the taxes levied pursuant to §§ 58.1-605 and 58.1-606, mutatis mutandis.
§ 58.1-3819. Transient occupancy tax.
A. Any county, city or town, by duly adopted ordinance, may levy a
transient occupancy tax on hotels, motels, boarding houses, travel campgrounds,
and other facilities offering guest rooms rented out for continuous occupancy
for fewer than thirty consecutive days. Such tax shall be in such amount and on
such terms as the governing body may, by ordinance, prescribe. Such tax shall
not exceed twofive and one-half percent of the amount of
charge for the occupancy of any room or space occupied; however, in any
county having a population of no less than 40,000 and no greater than 45,000,
and in any county which had adopted the county executive form of government,
and in any county having a population of no less than 57,000 and no greater
than 57,450, and in any county having a population of no less than 12,600 and
no greater than 12,800, and in any county having a population of no less than
86,000 and no greater than 86,500, such tax shall not exceed the rate of five
percent. The revenues collected from that portion of the tax over two percent
shall be designated and spent for promoting tourism, travel or business that
generates tourism or travel in the locality. It is further provided that any
county having a population of no less than 18,500 and no greater than 20,000;
any county having a population of no less than 21,500 and no greater than
23,000; any county having a population of no less than 34,500 and no greater
than 36,000; any county having a population of no less than 45,900 and no
greater than 47,000; and any county having a population of no less than 50,000
and no greater than 55,000 may levy a transient occupancy tax not to exceed
five percent, and any excess over two percent shall be designated and spent
solely for tourism, marketing of tourism or initiatives that, as determined in
consultation with the local tourism industry organizations, attract travelers
to the locality and generate tourism revenues in the locality. If there are no
local tourism industry organizations in the locality, the governing body shall
hold a public hearing prior to making any determination relating to how to
attract travelers to the locality and generate tourism revenues in the
locality.
B. The tax imposed hereunder shall not apply to rooms or spaces rented and continuously occupied by the same individual or same group of individuals for thirty or more days in hotels, motels, boarding houses, travel campgrounds, and other facilities offering guest rooms.
C. Nothing herein contained shall affect any authority
heretofore granted to any county, city or town to levy such a transient
occupancy tax. The county tax limitations imposed
pursuant to § 58.1-3711 shall apply to any tax levied under this section,
mutatis mutandis. Any city
levying a transient
occupancy tax at a rate exceeding five and one-half percent on January 1,
1998, shall be authorized to continue levying a transient occupancy
tax at the rate in effect on such date. Any tax
imposed pursuant to this section by a county
shall not apply within the limits of any town located within such
county if the town imposes a tax pursuant to this
section.
D. Any county, city or town which requires local hotel and motel businesses, or any class thereof, to collect, account for and remit to such locality a local tax imposed on the consumer, may allow such businesses a commission for such service in the form of a deduction from the tax remitted. Such commission shall be provided for by ordinance, which shall set the rate thereof, no less than three percent, not to exceed five percent of the amount of tax due and accounted for. No commission shall be allowed if the amount due was delinquent.
E. All transient occupancy tax collections shall be deemed to be held in trust for the county, city or town imposing the tax.
F. Any county, city or town may require that transient occupancy tax collections be remitted to the Department for collection and distribution to the taxing locality as provided in § 58.1-625.1.
§ 58.1-3833. County food and beverage tax.
A. Any county, city or town 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 eight and
one-halften percent, when added to the state and local general
sales and use tax, 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
any person described in subdivisions 1, 2, 3, and 5 of § 35.1-25, as well
as nonprofit cafeterias in public schools, nursing homes, and hospitals.
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. The food
and beverage tax levied on meals sold by grocery store delicatessens and
convenience stores shall be limited to prepared sandwiches and single-meal
platters.
This tax shall be levied only if the tax is approved in a referendum
within the county which shall be held in accordance with § 24.1-165 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 ten 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.
B. 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.
C. Collection of such tax shall be in a manner prescribed by the governing body.
B. Notwithstanding the provisions of subsection A of this
section, any county with a population of at least 70,000 but no more than
100,000, any county with a population of at least 17,910 but no more than
18,000, any county with a population of at least 34,000 but no more than
34,400, and any county having a county manager plan of government 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.
Any county, city or town may require that food and beverage tax
collections be remitted to the Department for collection and distribution to
the taxing locality as provided in § 58.1-625.1.
D. Any city levying a food and beverage tax at a rate exceeding five and one-half percent on January 1, 1998, shall be authorized to continue levying a food and beverage tax at the rate in effect on such date. Any tax imposed pursuant to this section by a county shall not apply within the limits of any town located within such county if the town imposes a tax pursuant to this section.
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.
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.
§ 58.1-3840. Certain excise taxes permitted.
The provisions of Chapter 6 (§ 58.1-600 et seq.) of this title to the
contrary notwithstanding, any city or town having general taxing powers
established by charter pursuant to or consistent with the provisions of §
15.1-841 may impose excise taxes on cigarettes,
admissions, transient room rentals,
meals, and travel campgrounds, provided that no such taxes may be
imposed on food and beverages sold through vending machines or on any tangible
personal property 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. In addition, as set forth in § 63.1-164, 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 and remit meals taxes. Any city or town
may impose a transient occupancy tax as provided in §
58.1-3819 and a food and beverage tax as provided in
Article 7.1 (§ 58.1-3833 et seq.) of this chapter.
2. That §§ 58.1-3820 through 58.1-3823 of the Code of Virginia are repealed.
3. That the provisions of this act shall become effective on January 1, 1999.