[Ord. of 7-1-2000; amended by Ord. No.
2005-4, 2-28-2005; 2-22-2010]
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:
To furnish food, beverages, or both on the premises of another,
for compensation.
The Commissioner of Revenue of the City and any of his or
her duly authorized deputies and agents.
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
shop, 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 which 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.
Any person who purchases a meal.
Any person who sells a meal.
The Treasurer or any of his or her authorized employees.
[Ord. of 7-1-2000; amended by Ord. of 5-29-2001(1)]
There is hereby imposed and levied by the City on each person
a tax at the rate of 6 1/2% 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.
[Ord. of 7-1-2000]
Any person operating a food establishment shall not advertise,
directly or indirectly, that the food establishment will absorb or
pay all or any part of the tax imposed by this article.
[Ord. of 7-1-2000]
(a)
Every person receiving any payment for food with respect to which
a tax is levied hereunder, whatever the means of payment, 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, 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.
(b)
All tax collections made hereunder shall be deemed to be held in
trust for the City until remitted as provided hereinbelow.
[Ord. of 7-1-2000]
(a)
The tax imposed under this article shall not be levied on factory-prepackaged
candy, gum, nuts and other items of essentially the same nature served
for on- or off-premises consumption.
(b)
The tax imposed under this article shall not be levied on the following
items when served exclusively for off-premises consumption:
(1)
Donuts, ice cream, crackers, nabs, chips, cookies and factory-prepackaged
items of essentially the same nature.
(2)
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.
(3)
Alcoholic and nonalcoholic beverages sold in factory-sealed
containers.
(4)
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.
(5)
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 the said definition of 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 non-factory-sealed
beverages. This subsection shall not affect provisions set forth in
Subsections (d)(3), (4) and (5) hereinbelow.
(c)
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.
(d)
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 and the spouses and
children of such persons.
(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 (not exceeding
12 times per calendar year) by a nonprofit 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
exclusively for nonprofit educational, charitable, benevolent or religious
purposes.
(7)
Food and beverages sold through vending machines.
[Ord. of 7-1-2000]
(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, 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, is subject to the tax imposed
by this article.
[Ord. of 7-1-2000; amended by Ord. No.
2005-4, 2-28-2005; 2-22-2010]
(a)
It shall be the duty of every person required by this article to
pay to the City the taxes imposed by this article to make a report
thereof setting forth such information as the Commissioner 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 report shall be signed and delivered to the
Commissioner with a remittance of the tax on or before the last day
of each month, covering the amount of tax collected during the preceding
month. If the remittance is made by check or money order, it shall
be made payable to the City of Franklin.
(b)
Such records shall be kept and preserved for a period of five years.
The Commissioner or his or her 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.
(c)
If any person, whose duty it is to do so, shall fail to collect the
tax imposed by this article and make the reports and remittances required
hereunder, the Commissioner may obtain the facts and information on
which to base an estimate of the amount due from the seller's records,
determine and assess against the seller the tax and penalties due,
and notify such seller thereof, by registered mail sent to the seller's
last known place of address, after which the total tax and penalties
due shall be payable within 10 days of the receipt of such notice.
[Ord. of 7-1-2000; amended by Ord. No.
2005-4, 2-28-2005; 2-22-2010]
(a)
It shall be the duty of the Commissioner to ascertain the name and
address of every person in the City operating a food establishment
in the City liable for collection of the tax levied under this article
who fails, refuses or neglects to collect such tax and make the reports
and remittances required hereunder.
(b)
The Commissioner shall turn over to the Treasurer all remittances
and copies of reports received hereunder within 15 days of receipt
thereof.
[Ord. of 7-1-2000; amended by Ord. No.
2005-4, 2-28-2005; 2-22-2010]
The Treasurer shall have the power and duty of collecting the
taxes imposed and levied hereunder and shall cause the same to be
paid into the general treasury of the City.
[Ord. of 7-1-2000]
If any person, whose duty it is to do so, shall fail or refuse
to remit to the Commissioner of Revenue the tax required to be collected
and paid under this article, then there shall be added to such tax
a penalty in the amount of 5% for each additional 30 days or fraction
thereof, not to exceed 25% in the aggregate.
[Ord. of 7-1-2000; amended by Ord. No.
2003-10, 7-28-2003]
(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.
(b)
Any person who wrongfully and fraudulently uses meals taxes collected other than by remitting them to the Commissioner as required by § 27-165 above shall be guilty of embezzlement. Embezzlement hereunder of an amount less than $200 shall constitute a Class I misdemeanor.
(c)
Any corporate, partnership or limited liability company officer,
as defined in Code of Virginia, § 58.1-3906, who willfully
fails to pay, collect or truthfully account for or pay over such tax,
or who willfully attempts in any manner to evade or defeat such tax
or the payment thereof, shall, in addition to any other penalties
imposed by law, be liable for a penalty in the amount of the tax evaded
or not paid, collected, or accounted for and paid over, to be assessed
and collected in the same manner as such taxes are assessed and collected.
(d)
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.
