Tax Type
Local Taxes
Description
Local meals tax; Grocery or convenience store sales
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
08-30-1990
August 30, 1990
Re: Ruling Request/Local Meals Tax
Dear****************
This will reply to your letter of July 11, 1990 seeking a ruling on behalf of ******* (the "Taxpayer") concerning the application of local meals taxes to certain items sold through grocery or convenience stores.
FACTS
In connection with its operation of service stations, the Taxpayer operates certain convenience stores which sell prepared sandwiches, coffee, fountain drinks, and similar refreshments. You ask whether sales of fountain drinks, coffee and similar refreshments are subject to local meals tax pursuant to a recent law change.
RULING
Virginia Code §58.1-3833 (copy enclosed) permits counties to impose a food and beverage tax on meals sold by restaurants. This section provides that beverages subject to the tax include alcoholic and nonalcoholic beverages served as part of a meal.
As amended by the 1990 General Assembly, the local meals tax was extended to off-premises consumption of meals sold by restaurants. Grocery stores and convenience stores selling prepared foods ready for human consumption at a delicatessen counter are also subject to the tax.
However, the tax levied on meals sold by grocery store delicatessens and convenience stores is limited to prepared sandwiches and single-meal platters. Since the tax applies to beverages served as part of a meal, it would apply to beverages served as part of a meal when sold by a grocery store delicatessen or convenience store.
It should be noted that the above statute only concerns the authority of counties to levy local meals taxes. Thus, this section has no application to the imposition of local meals taxes by cities.
Further, the meals tax is a local tax which is imposed and administered by local officials. Although I believe that the foregoing is in accordance with applicable law, this ruling is advisory only and is therefore nonbinding on the various counties which levy meals taxes. A final determination rests with the localities imposing a meals tax.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner