10101463D
SENATE BILL NO. 280
Offered January 13, 2010
Prefiled January 12, 2010
A BILL to amend and reenact §§58.1-3833, 58.1-3834, and
58.1-3842 of the Code of Virginia, relating to local food and beverage tax.
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Patron-- Quayle
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Referred to Committee on Finance
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Be it enacted by the General Assembly of Virginia:
1. That §§58.1-3833, 58.1-3834, 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
percent of the amount charged for such food and beverages at a rate established in the local ordinance. The tax shall be computed based upon 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 rescue squads; nonprofit churches or other
religious bodies; educational, charitable, fraternal, or benevolent
organizations, on an occasional basis, not exceeding three times per calendar
year 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 The tax authorized
pursuant to this section shall only be imposed if the governing body of the 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 imposing the tax is adopted by a majority vote of
the elected members of the governing
body of the county. The tax shall be effective in an amount
and on such terms as the governing body may by ordinance prescribe.
No increase in the tax
authorized pursuant to this section shall become effective unless the governing
body of the county holds a public hearing
before adopting such increase, and
the local ordinance increasing
the tax is adopted by a majority vote of the elected
members of the governing body of the county.
C. Nothing herein contained shall affect any authority
heretofore granted to any county, city or town prior
to July 1, 2010, 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 that has adopted an ordinance
pursuant to subsection A of this section prior to July 1, 2010, shall
be required to submit an amendment to its meals tax ordinance to the voters in
a referendum. No county that is
proposing to adopt an ordinance pursuant to this section on or
after July 1, 2010, shall be required to submit the
proposed meal tax ordinance to the voters in a referendum.
E. 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% 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.
§58.1-3834. Apportionment of food and beverage or meals tax.
In any case where a business is located partially within two
or more local jurisdictions by reason of the boundary line between the local
jurisdictions passing through such place of business, and one or more of the
local jurisdictions imposes the food and beverage or meals tax, the tax rate
shall be computed by applying the apportionment formula in §58.1-3709 to the
food and beverage or meals tax rate of each applicable local jurisdiction. Such
apportioned rate shall be rounded to the nearest one-half percent; provided, the total tax rate shall not exceed the
rate authorized in §58.1-3833.
§58.1-3842. Combined transient occupancy and food and
beverage tax.
A. Rappahannock County, by duly adopted ordinance, is 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 the
county's rate of tax pursuant to §58.1-3833. The tax shall be computed based
upon 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.) of this title. 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 held
prior to July 1, 2010; or, on
or after July 1, 2010, has been adopted by a majority vote of
the elected members of the governing body of the county
as provided by the second paragraph of
subsection A subsection B
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 prior to July 1, 2010,
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 section.
E. Nothing herein contained shall affect any authority
heretofore granted to any county, prior
to July 1, 2010, to levy a food and beverage tax or a
transient occupancy tax.
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