HomeMy Public PortalAbout2000_06_27_O020 Amending the Town Code relating to Meals TaxThe Town of
Leesburg,
v rg nm
ORDINANCE NO.
AN ORDINANCE:
June 27, 2000
PRESENTED
2000-0-20 ADOPTED June 27, 2000
TO AMEND THE TOWN CODE BY ADDING ARTICLE IV(A)
CONSISTING OF SECTIONS 17-95.1 THROUGH 17-95.7, AND
TO REPEAL ARTICLE IV (SECTIONS 17-95 THROUGH 17-
109) RELATING TO MEALS TAX
WHEREAS, during its past legislative session, the Virginia General Assembly
passed HB 255 that affects the way Virginia localities may impose the meals tax on the
purchase of prepared food items; and
WHEREAS, as a result of this action, the Virginia Municipal League has prepared
a model meals tax ordinance for localities to adopt that incorporates the changes in the
definition of the food items that are subject to the meals tax; and
WHEREAS, this change is effective July 1, 2000.
THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia
as follows:
SECTION I. The Town Code is hereby amended by adding Article IV(A), consisting of
Sections 17-95.1 through 17-95.7 as follows:
Sec. 17-95.1 Definitions.
The following words and phrases, when used in this ordinance, shall have, for the
purposes of this ordinance, the following respective meanings except where the context
clearly indicates a different meaning:
Cater. The furnishing of food, beverages, or both on the premises of another, for
compensation.
Collector. The Director of Finance or designee.
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Director. The Director of Finance and any duly designated deputies, assistants,
inspector or other employees.
Food. 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.
Food establishment. Any place in or from which food or food products are
prepared, packaged, sold or distributed in the town, 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.
Meal. Meal shall mean 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.
Sec. 17-95.2 Levy.
There is hereby imposed and levied by the town on each person a tax at the rate of
three and one half (3 ½%) percent 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.
Sec. 17-95.3 Collection of tax by seller.
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 ordinance from
the person on whom the same is levied or from the person paying for such food at the
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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.
All tax collections shall be deemed to be held in trust for town.
Sec. 17-95.4 Exemptionsl limits on application.
(a) The tax imposed under this ordinance 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 non-alcoholic 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
thepurposes of administering the tax levied hereunder, the following items
whether or not
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b)
(c)
(2)
(3)
(4)
(5)
(6)
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 nonfactory sealed beverages.
This subsection shall not affect provisions set forth in subparagraphs (d)
(3), (4) and (5) hereinbelow.
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.
The tax imposed hereunder shall not be levied on the following purchases
of food and beverages:
Food and beverages furnished by food establishments to employees as part
of their compensation when no charge is made to the employee.
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.
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.
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.
Food and beverages furnished by a public or private non-profit 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.
Food and beverages sold on an occasional basis, [not exceeding five (5)
times per calendar year], by a non-profit educational, charitable or
benevolent organization, church, or religious body as a fundraising
activity, the gross proceeds of which are to be used by such organization
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exclusively for non-profit educational, charitable, benevolent or religious
purposes.
(7) Food and beverages sold through vending machines.
Sec. 17-95.5 Gratuities and service charges.
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 ordinance, whether paid in cash to the employee or added to the
bill and charged to the purchaser's account, provided in the latter case, the full amount of
the gratuity is turned over to the employee by the seller.
An amount or percent, whether designated as a gratuity, tip or service charge, that
is added to the price of the food and beverages by the seller, and required to be paid by
the purchaser, as a part of the selling price of the food and beverages is subject to the tax
imposed by this ordinance.
Sec. 17-95.6 Report of taxes collected; remittance; preservation of records.
It shall be the duty of every person required by this ordinance to pay to the town
the taxes imposed by this ordinance to make a report thereof setting forth such
information as the Director may prescribe and require, including all purchases taxable
under this ordinance, 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
ordinance. Such records shall be kept and preserved for a period of five (5) years. The
Director 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 ordinance, and to
make transcripts of all or any parts thereof.
Sec. 17-95-7 Penalty for violation of ordinance.
(a) Any person willfully failing or refusing to file a return as required under
this ordinance 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 $1,000.00 or less. Any
person violating or failing to comply with any other provision of this ordinance shall be
guilty of a class 1 misdemeanor.
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(b) Except as provided in subsection (a) above, any corporate or partnership
officer, as defined in Virginia Code §58.1-3906, or any other person required to collect,
account for, or pay over the meals tax imposed under this ordinance, 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 ordinance 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 ordinance.
SECTION 11. Article IV (Sections 17-95 through 17-109) of the Town Code is hereby
repealed.
SECTION m. This ordinance shall be in effect July 1, 2000.
PASSED this 27thday of June, 2000.
ATTEST:
J)l~es E. Clem, Mayor
Town of Leesburg
~/1/erk of Council
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