Meals Tax Training
AGENDA
• What is the tax and who is required to collect
it?
• Registration process
• Collecting the tax and what is taxable
• Remittance process and record keeping
• Contact information and questions
2
CHRONOLOGY OF EVENTS
• November 5, 2013, a majority of voters in the
County approved a referendum giving the
Board of Supervisors the authority to pass a
Food and Beverage Tax ordinance.
• February 25, 2014, the Board of Supervisors
officially adopted the tax.
3
FOOD AND BEVERAGE TAX
• The Food and Beverage Tax, commonly
referred to as a “meals tax”, is a four percent
(4%) tax levied on food and beverages.
• June 1, 2014, restaurants and other
establishments will begin collecting the tax.
4
WHO IS REQUIRED TO COLLECT THE TAX?
The food and beverage tax is levied on food and beverages
sold by restaurants as the term is defined in the Code of
Virginia. Food served from delicatessen counters at
convenience and grocery stores is also subject to the tax.
Restaurants include but are not limited to:
Amusement Parks
Billiard Parlors
Bowling Alleys
Buffets
Cafes
Cafeterias
Caterers (Licensed in Henrico)
Coffee Shops
Concession Stands
Delicatessens
Dining Rooms
Health Clubs
Hot Dog Stands
Lunchrooms
Mobile Food Services
Nightclubs
Office/Government Cafeterias
Public and Private Clubs
Push Carts
Short Order Places
Skating Rinks
Sporting Venues
Taverns
Theaters
5
ADDITIONAL FACTS
• To help offset the administrative costs
associated with collecting the tax, a 3% discount
has been included in the ordinance for those
businesses that file and remit on a timely basis.
• The filing and payment due dates for the meals
tax correspond to filing and payment dates for
the Virginia sales tax, the 20th day of the
following month, to avoid confusion or
duplication of effort.
6
REGISTRATION PROCESS
7
Registration Process
• Every person responsible for the collection of the tax needs to file
an application for a certificate of registration with our office. The
application will be on a form designed by the County to provide
information for the assessment and collection of this tax.
• Upon approval of the application, a certificate of registration
authorizing the collection of the meals tax will be issued to the
applicant.
• Each person with a certificate of registration is required to notify
our office of any changes to the information provided on their
application within thirty (30) days of the change.
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Registration Form
Rev 12/13 SL
County of Henrico, Virginia
Application for Certificate of Registration
Food and Beverage Tax
Department of Finance
Business Section
P O BOX 90775
Henrico VA 23273-0775
ACCOUNT NUMBER
Separate Application Required for Each Location
PLEASE REPORT BELOW ANY CHANGES IN THE PRE-PRINTED INFORMATION.
OWNER’S
NAME
OWNER’S
NAME
Corporation Name or First Name, Middle Initial, and Last Name
TRADE
NAME
TRADE
NAME
MAILING
ADDRESS
MAILING
ADDRESS
Number/Street or Route/Apt./Room
Number/Street or Route/Apt./Room
CITY
STATE/ZIP
PHYSICAL LOCATION
CITY
STATE/ZIP
PHYSICAL LOCATION
Number/Street or Route/Apt./Room
TYPE OF ESTABLISHMENT
(Please √ box which is most appropriate.)
01
Bakery
02
03
04
Caterer (including airline)
Coffee Shop
Convenience Store
05
06
07
Fast Food Restaurant
Full Service Restaurant
Gas Station
08
09
10
11
12
Grocery Store
Hospital or Nursing Home
Industrial Cafeteria
Mobile Food Service
Night Club or Tavern
13
Office or Government Cafeteria
14
Private or Public Club
15
School, College or University
16
Snack Bar or Concession Stand
99
Other (Please describe.)
Number/Street or Route/Apt./Room
OTHER INFORMATION
Type of Food
You Sell
Average Cost of Meal for Two (including beverages and dessert) √ Applicable Response
Under $25
$25-$50
$50+
Days and Hours of Operation
Seating Capacity
Square Footage
ABC License Number (if applicable)
VA Sales and Use Number
Seasonal Business – Check months you are active. (√)
JAN
FEB
MAR
(Complete if you are only open part of the year.)
APR
MAY
JUN
JUL
AUG
SEPT
OCT
NOV
DEC
Office Use Only
Please provide contact data for a person who has knowledge of your food and beverage tax return information and has
permission to discuss that information.
Name
Phone Number
Title
Fax Number
Location of Records
E-Mail
DECLARATION OF TAXPAYER – I declare that the foregoing and figures are true, full, and correct to the best of my knowledge and belief.
Signature/Title
Date
Name
(Please Print)
For Assistance, please call (804) 501-7354 or (804) 501-7329
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Certificate of Registration
COUNTY OF HENRICO, VIRGINIA
DEPARTMENT OF FINANCE
CERTIFICATE OF REGISTRATION FOR THE COLLECTION OF FOOD AND BEVERAGE TAX
NAME AND ADDRESS
ACCOUNT NUMBER
LOCATION OF SELLER
THE NAMED SELLER IS HEREBY AUTHORIZED AND
EMPOWERED TO COLLECT THE FOOD AND
BEVERAGE TAX FOR THE COUNTY OF HENRICO
REFER TO THIS NUMBER IN
ALL CORRESPONDENCE
BEGINNING LIABILITY DATE
MONTH
DAY
YEAR
DATE ISSUED
MONTH
DAY
YEAR
Rev 12/13 SL
10
Not Subject to Collecting the Meals Tax
Department of Finance
Business Section
P O BOX 90775
Henrico VA 23273-0775
County of Henrico, Virginia
Food and Beverage Tax
Notification by Businesses Not Required to Collect
ACCOUNT NUMBER
Separate Form Required for Each Location
Owner’s Name ______________________________
Trade Name ______________________________
Mailing Address __________________________________ City, State, ZIP __________________________
Physical Location ________________________________________________________________________
Mark any that apply:
sell no food or beverage items at all
sell only beverages, no food
sell only desserts, ice cream or other snack foods
sell only grocery items or food in bulk
sell only some combination of beverages, snack foods or grocery items
bakery with no seating
convenience or grocery store that does not serve prepared foods from a delicatessen (made to order) counter
hospital or nursing home providing food only to patients or residents
industrial cafeteria selling only to employees (not applicable to government or office cafeterias)
school, college or university selling only to students and employees
volunteer fire department or rescue squad; nonprofit church or other religious body; educational, charitable,
fraternal, or benevolent organization, selling on an occasional basis, not exceeding three times per calendar year
as a fundraising activity, the gross proceeds of which are to be used by such church, religious body or
organization exclusively for nonprofit educational, charitable, benevolent, or religious purposes
If this information changes, you are required to provide accurate updated information to the County of Henrico
Department of Finance.
For Assistance Please Call (804) 501-7354 or (804) 501-7329
11
COLLECTING THE TAX
12
Common Exemptions
•
•
•
•
Food and beverages when consumed and paid for by the
Commonwealth of Virginia, any political subdivision of the
Commonwealth, or the United States
Food and beverages sold by restaurants to their employees as
part of their compensation when no charge is made to their
employee
Food purchased for human consumption as “food” is defined in
the Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended, and
federal regulations adopted pursuant to the act, except for the
following items: 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.
A complete list of exemptions is provided in the Guidelines as
well as on the website.
13
TAXABLE AND NON-TAXABLE
ITEMS
14
Gratuities and Service Charges
• Any discretionary gratuity is non-taxable.
• Non-discretionary gratuity added to the cost
of the meal is taxable if it is more than twenty
percent (20%). Only the amount greater than
20% is taxable.
15
Restaurants
– EXAMPLES OF TAXABLE ITEMS
•
•
•
•
•
Entrees and side dishes
Sandwiches (hot or cold), burgers and hotdogs
Pizza
Soups, salads and buffets
Beverages, desserts and snacks sold with a meal
– EXAMPLES OF NON-TAXABLE ITEMS
• Beverages not sold with a meal
• Cookies, desserts, donuts, ice cream, popcorn and other snacks
not sold with a meal
• Grocery items, such as salads (potato, macaroni, etc.) sold by the
pound, whole cakes or pies, coffee beans and other dry goods,
and ice cream sold in bulk
16
Grocery and Convenience Stores
– EXAMPLES OF TAXABLE ITEMS
•
•
•
•
Hot foods served from the deli counter
Made-to-order sandwiches from the deli counter
Hot pizza from the deli counter
Individual pieces of chicken served from the deli
counter
17
Grocery and Convenience Stores
– EXAMPLES OF NON-TAXABLE ITEMS
•
•
•
•
•
•
•
Cold or frozen foods that are normally served hot
Prepackaged foods
Beverages
Foods sold by the pound
Bakery items
Whole, prepackaged cooked chickens
Grocery items, such as salads (potato, macaroni, etc.)
sold by the pound, whole cakes or pies, coffee beans
and other dry goods, and ice cream sold in bulk
18
Caterers and Banquet Facilities,
including Hotels
– TAXABLE ITEMS
Separately stated charges for food and beverages
(following the same rules as restaurants, etc.). This
applies to caterers located in Henrico, regardless of
where the meals are delivered or consumed.
– NON-TAXABLE ITEMS
• Separately stated charges for services and rentals
(audio visual equipment, dishes, room rental, etc.)
• Complementary meals offered by hotels and bed-andbreakfasts as part of the individual guest’s room charge
19
REMITTANCE PROCESS
AND
RECORDKEEPING REQUIREMENTS
20
Remittance of Tax Collected
•
A business required to collect the meals tax must file a return and remit to the
County any food and beverage taxes according to the following schedule:
•
Monthly Filers: Returns and payment are due on or before the 20th day of each
month, covering the amount of tax collected during the preceding month.
•
Quarterly Filers: Returns and payment are due on or before the 20th day of the
month immediately following the end of the quarter, covering the amount of tax
collected during the preceding quarter. The quarterly returns and payment of tax
shall be filed with the director of finance on or before April 20, July 20, October 20,
and January 20, representing, respectively, the gross proceeds and taxes collected
during the preceding quarters ending March 31, June 30, September 30 and
December 31.
•
Seasonal Filers: Returns and payment are due on or before the 20th day of the
month immediately following the collection of the tax, covering the amount of tax
collected during the preceding month.
21
Penalties for Failure to File and Pay by
the Due Date
• A penalty of ten percent of the tax will be assessed
for failure to file by the due date.
• In addition, a penalty of ten percent of the tax due
will be assessed for failure to pay by the due date.
• Interest will be assessed at the rate of ten percent per
year on the amount of tax and penalties past due.
The interest will commence on the day following the
day on which the tax was due and continue until paid.
22
Criminal Penalties
Any person required to collect, account for, and
pay over the meals tax who fails to collect or
truthfully account for and pay over this tax, will
be guilty of a class 1 misdemeanor.
23
Remittance Form
COUNTY OF HENRICO, VIRGINIA
DEPARTMENT OF FINANCE
(804) 501-7354 or (804) 501-7329
Collections for the Period Ending:
_____________________________________
Account Number
Name & Address
I declare that the forgoing statements are true, full and correct
to the best of my knowledge.
__________________________________________
Signature
Date
______________________
________________
Title
Phone
FOOD AND BEVERAGE TAX
1. Gross Sales
2. Non- Taxable Sales and Other Deductions
3. Taxable Sales (Line 1 less Line 2)
4. Food and Beverage Tax (Line 3 X 4%)
5. Seller’s Commission (Line 4 X 3%)
$__________________
$__________________
$__________________
$__________________
$__________________
(only if the return is filed and the tax paid in full by the due date)
6. Subtotal (Line 4 less Line 5)
7. Penalty for Late Filing (Line 6 X 10%)
8. Penalty for Late Payment [(Lines 6 + 7) X 10%]
9. Sum of Lines 6, 7, and 8
10. Interest if Late (Line 9 X a daily rate of .0274%)
11. Total Due (Line 9 + Line 10)
12. Amount Paid
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
th
Due by the 20 day of the month following the end of the reporting period.
Mail To: County of Henrico, Lockbox #4733, P O Box 90791, Henrico, VA 23228-0791
Rev 1/14 SL
24
Examples
TIMELY FILING/PAYMENT
EXAMPLE
COUNTY OF HENRICO, VIRGINIA
DEPARTMENT OF FINANCE
(804) 501-7354 or (804) 501-7329
Collections for the Period Ending:
June 2014
Account Number
Name & Address
1. Gross Sales
2. Non- Taxable Sales and Other Deductions
3. Taxable Sales (Line 1 less Line 2)
4. Food and Beverage Tax (Line 3 X 4%)
5. Seller’s Commission (Line 4 X 3%)
$
$
$
$
$
12,000
(2,000)*
10,000
400
(12)
(only if the return is filed and the tax paid in full by the due date)
I declare that the forgoing statements are true, full and correct
to the best of my knowledge.
_John Doe______________
Signature
_Accountant____________
Title
FOOD AND BEVERAGE TAX
_____7/1/14___
Date
_XXX-XXXX____
Phone
6. Subtotal (Line 4 less Line 5)
7. Penalty for Late Filing (Line 6 X 10%)
8. Penalty for Late Payment [(Lines 6 + 7) X 10%]
9. Sum of Lines 6, 7, and 8
10. Interest if Late (Line 9 X a daily rate of .0274%)
11. Total Due (Line 9 + Line 10)
12. Amount Paid
$
388
$__________________
$__________________
$
388
$__________________
$
388
$
388
th
Due by the 20 day of the month following the end of the reporting period.
Mail To: County of Henrico, Lockbox #4733, P O Box 90791, Henrico, VA 23228-0791
For, example, *sales of items without a meal OR non-food items AND deductions for returned checks.
25
Examples
DELINQUENT FILING AND PAYMENT
EXAMPLE
COUNTY OF HENRICO, VIRGINIA
DEPARTMENT OF FINANCE
(804) 501-7354 or (804) 501-7329
Collections for the Period Ending:
June 2014
Account Number
Name & Address
1. Gross Sales
2. Non- Taxable Sales and Other Deductions
3. Taxable Sales (Line 1 less Line 2)
4. Food and Beverage Tax (Line 3 X 4%)
5. Seller’s Commission (Line 4 X 3%)
$
12,000
$
(2,000)*
$
10,000
$
400.00
$__________________
(only if the return is filed and the tax paid in full by the due date)
I declare that the forgoing statements are true, full and correct
to the best of my knowledge.
_John Doe______________
Signature
_Accountant____________
Title
FOOD AND BEVERAGE TAX
_____8/21/14___
Date
_XXX-XXXX____
Phone
6. Subtotal (Line 4 less Line 5)
7. Penalty for Late Filing (Line 6 X 10%)
8. Penalty for Late Payment [(Lines 6 + 7) X 10%]
9. Sum of Lines 6, 7, and 8
10. Interest if Late (Line 9 X a daily rate of .0274%)
11. Total Due (Line 9 + Line 10)
12. Amount Paid
$
400.00
$_________40.00____
$_________44.00____
$
484.00
$________ __3.98____
$
487.98
$
487.98
th
Due by the 20 day of the month following the end of the reporting period.
Mail To: County of Henrico, Lockbox #4733, P O Box 90791, Henrico, VA 23228-0791
For, example, *sales of items without a meal OR non-food items AND deductions for returned checks.
26
Record Retention and Audit
• Each business collecting the meals tax is required to
keep and preserve for five years records showing gross
sales of all food and beverages, the amount charged to
the purchaser for each such purchase, the date of the
purchase, the taxes collected on the purchase, and the
amount of tax required to be collected.
• Our office has the right to examine these records at
reasonable times and to make copies of any or all parts
of the records.
27
Going Out of Business
When a business that was required to collect
or pay the food and beverage tax ceases
operations, any tax collected but not yet
remitted shall become immediately due and
payable, and such business shall immediately
make a report and pay the tax due.
28
MEALS TAX
Contact Information:
Susan Layne
Steve Klos
(804) 501-7354 lay@co.henrico.va.us
(804) 501-7329 klo11@co.henrico.va.us
www.co.henrico.va.us/finance/meals-tax-information
Questions?
29