87-287 | Virginia Tax

Tax Type

Local Taxes

Description

Meals tax; Imposition by city or town

Topic

Local Power to Tax

Local Taxes Discussion

Date Issued

12-23-1987

December 23, 1987

Dear ******************

This will reply to your letter of November 30, 1987, in which you request a ruling on the-applicability of the meals tax imposed by the********** to hot food and snack vending services provided by

§58.1-3840 of the Code of Virginia provides:

- any city or town having general taxing powers established by charter pursuant to or consistent with the provisions of §15.1-841 (of The Code of Virginia) may impose excise taxes on cigarettes, admissions, transient room rentals, meals, and travel campgrounds.

As such, the statute permits the imposition of a meals tax by any city or town that possesses general taxing authority under the charter issued to it by the General Assembly. The statute does not define the term "meals," nor does it place any restrictions upon what types of items may be included within the scope of a city or town meals tax. Further, the statute does not contain any exemptions from meals taxes other than an exemption for food items purchased with food stamps or drafts issued through the WIC (Women, Infants, Children) food program.

I have enclosed for your review copies of 1976 and 1983 opinions of the Attorney General that address the authority of cities and towns to impose meals taxes. However, I am not aware of any Attorney General's opinions that address the question of what sales may be included under such taxes.

Because state law is not specific in this regard, I cannot determine whether the ********** meals tax would be applicable to food and snack items sold by your college. As this is a purely local tax matter, you may wish to consult with officials in the town to determine whether the ordinance imposing the tax would encompass these sales by your college. Further, you may wish to determine whether the ordinance contains an exemption for sales of food items by governmental entities.

It should be noted in this regard that sales of tangible personal property by state and local governments are not exempted from the sales and use tax. The exemption from the tax for governmental entities found in §58.1-608.18 of the Code of Virginiaapplies only to the purchase of tangible personal property for "use or consumption by the Commonwealth (and) any political subdivision of the Commonwealth." Virginia Regulation 630-10-45 (copy enclosed) sets forth requirements for the collection of the sales tax on sales made by state and local governments.

I am sorry that I cannot fully answer your question: however, I am sure that the ********** can assist you in this regard. If we may be of any assistance on any other questions, please let me know.

Sincerely,

W. H. Forst
Tax Commissioner

Rulings of the Tax Commissioner