Fluvanna County supervisors voted unanimously Wednesday to advertise amendments to local code implementing a 4% food-and-beverage tax and to adopt a policy directing half the tax revenue to a new school construction fund.

The Board of Supervisors voted to send proposed ordinance language for public hearing on June 18 and approved a separate school construction fund policy that clarifies what projects are eligible for the 50% allocation of revenues. Supervisor Mitchell Shannon made the motion to advertise the ordinance amendments; the motion passed 5-0.

County staff told the board the 4% tax takes effect Aug. 1. A staff presenter explained the proposed ordinance changes would (1) provide procedures for the commissioner of revenue to send application and remittance forms to sellers, (2) authorize both the commissioner of revenue and the treasurer to examine sellers' records, (3) clarify a state-code exemption for some farmers-market sales while treating mobile food trucks as taxable, and (4) allow a small administrative deduction to sellers to cover credit-card processing or collection costs.

"Most of the vendors are going to be paying the remittance by credit card," the staff presenter said. "What we're proposing is ... sellers can deduct 3% of the amount, not to exceed $100, to compensate for the collection of the tax and the reporting of the tax." (First reference: staff presenter Mr. Whitner.)

On the school construction fund, the board voted to create a dedicated special fund into which 50% of food-and-beverage revenues will be placed. The policy narrows eligible uses to new public school buildings and major expansions of existing school buildings for K-12 instructional or career-and-technical education purposes. The board struck the phrase "and/or renovation" from the draft policy and set a $10 million minimum threshold for expansion projects to qualify. The motion to adopt the policy with those changes passed 5-0.

A staff member described the fund's mechanics: gifts and donations may be allocated to the fund, interest earned remains in the fund, and requests will be submitted by the school system to the director of finance for review and board action. Board members discussed whether the policy should specify a dollar threshold and agreed $10 million as the minimum for qualifying expansion projects.

The board also discussed practical details of tax administration: the commissioner of revenue will identify sellers and distribute forms; sellers will submit a monthly remittance form showing gross receipts for meals, any administrative deduction, and the tax due; and the treasurer will collect funds. Staff said enforcement steps would remain available if sellers failed to remit.

The ordinance amendments and the school construction fund policy will return for public hearing on June 18. The board's action sends the tax-administration language and the fund policy to public review while preserving the Aug. 1 effective date for the tax itself.