[Adopted 7-10-2000[1]]
[1]
Editor's Note: This ordinance also superseded
former Article V, Meals Tax, adopted 6-8-1987.
The following words and phrases, when used in
this article, shall have, for the purposes of this article, the following
respective meanings, except where the context clearly indicates a
different meaning:
The furnishing of food, beverages, or both, on the premises
of another for compensation.
The Director of Finance or designee.
The Director of Finance and any duly designated deputies,
assistants, inspector or other employees.
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.
Any place in or from which food or food products are prepared,
packaged, sold or distributed in the City, 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.
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.
[Amended 6-8-2009; 5-29-2012]
There is hereby imposed and levied by the City
of Galax on each person a tax upon 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. Beginning on July
1, 2012, the amount of such tax shall be 7.5% of the charge made for
each such meal, or such other amount as thereafter determined by the
City Council by ordinance duly adopted.
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 article from the person
on whom the same is levied or from the person paying for such food
at the time payment for such food is made; provided, however, that
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 the City of Galax.
A.
The tax imposed under this article 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 nonalcoholic 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 the purposes of administering the tax levied hereunder, the following items, whether or not purchased for immediate consumption, are excluded from 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 Subsection C(3), (4) and (5) hereinbelow.
B.
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.
C.
The tax imposed hereunder shall not be levied on the
following purchases of food and beverages:
(1)
Food and beverages furnished by food establishments
to employees as part of their compensation when no charge is made
to the employee.
(2)
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.
(3)
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.
(4)
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.
(5)
Food and beverages furnished by a public or private
nonprofit 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.
(6)
Food and beverages sold on an occasional basis by
a nonprofit educational, charitable or benevolent organization, church
or religious body as a fund-raising activity, the gross proceeds of
which are to be used by such organization exclusively for nonprofit
educational, charitable, benevolent or religious purposes.
(7)
Food and beverages sold through vending machines.
A.
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 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 gratuity is turned over to the
employee by the seller.
B.
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 and is subject
to the tax imposed by this article.
It shall be the duty of every person required
by this article to pay to the City of Galax the taxes imposed by this
article to make a report thereof setting forth such information as
the Director may prescribe and require, including 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. Such records shall
be kept and preserved for a period of five 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 article, and to make transcripts of all or
any parts thereof.
A.
Any person willfully failing or refusing to file a
return as required under this article 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 or less. Any person violating or failing to comply with
any other provision of this article shall be guilty of a Class 1 misdemeanor.
B.
Except as provided in Subsection A above, any corporate or partnership officer, as defined in the Code of Virginia, § 58.1-3906, or any other person required to collect, account for or pay over the meals tax imposed under this article, 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 article
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 article.
