Sec. 36-254.3. Exemptions; limits on application.
(a) The tax imposed under this ordinance 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 ordinance shall not be levied on the following items when served exclusively for off-premises consumption:
(1) Factory – prepackaged donuts, ice cream, crackers, nabs, chips, cookies and other items of essentially the same nature, except when sold as part of a meal.
(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 non-alcoholic beverages sold in factory sealed containers, except when sold as part of a meal.
(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, and federal regulations adopted pursuant to that act, 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 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, nonfactory sealed beverages and ice cream. This subsection shall not affect provisions set forth in subparagraphs (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, when the food and beverages are sold in a dinning hall or cafeteria or included as part of a student’s tuition or as part of an employee’s pay.
(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. Food items that are sold to members of the general public in a cafeteria are subject to the prepared food tax.
(5) 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.
(6) Food and beverages sold on an occasional basis, not exceeding two (2) 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 exclusively for non-profit educational, charitable, benevolent or religious purposes.
(7) Food and beverages sold through vending machines.
(8) Churches that serve meals for their members as a regular part of their religious observances.
(9) 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.
(10) No blind person operating a vending stand or other business enterprise under the jurisdiction of the Department for the Blind and Vision Impaired 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.
(11) That portion of the amount paid by the purchaser as a discretionary gratuity in addition to the sales price of the meal or 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 of the meal, but only to the extent that such mandatory gratuity or service charge does not exceed twenty percent (20%) of the sales price.
(e) Meals sold or purchased under nonprofit nutrition programs for the elderly qualifying under 42 U.S.C. Section 3030(e) thru (g), as amended, as administered by the Office of Aging of the Commonwealth of Virginia, shall not be considered as sales of food under this division. (Ord. No. O-00-138, 6-27-00, eff. 7-1-00; Ord. No. O-10-067, 5-25-10)
Last updated date: 6/21/2010 3:51:06 PM