Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Tax topic
No spam. Unsubscribe anytime.
Fluvanna staff report early collections and clarify rules for new 4% food-and-beverage tax
Summary
County staff reported August collections of $49,131 and September $45,032 for the new 4% food-and-beverage tax, said 36 sellers have registered, and recommended collecting the tax on single glasses of alcoholic and nonalcoholic beverages to simplify point-of-sale compliance.
County staff updated the Board of Supervisors Nov. 5 on the implementation of Fluvanna's 4% food-and-beverage tax, adopted March 19 and effective Aug. 1.
"So far, collections in the month of August, $49,131 was collected," staff reported, adding September collections of $45,032 and noting 36 restaurants and vendors are registered and remitting the tax. Staff said remittance forms and monthly payments are due on the 20th of each month and that enforcement powers rest with the commissioner of revenue and treasurer under county code and state law.
Staff described a policy change in interpretation: whereas initial guidance suggested a single glass of wine or beer might not be subject to the tax unless sold as part of a meal, the county will collect the food-and-beverage tax on single, non-factory-sealed beverages consumed on premises to avoid point-of-sale complexity — an approach similar to Albemarle County's practice. The treasurer has agreed to waive interest and penalties through the end of the calendar year to give businesses time to adapt.
Board members asked follow-up questions about point-of-sale issues for mixed tabs, bottles sold 'to go' and fountain drinks; staff said factory-sealed containers sold for off-premises consumption are not subject to the food-and-beverage tax and explained how state sales tax and the local food-and-beverage tax would combine in certain sales.
No new ordinance changes or enforcement actions were taken at the meeting; the item was an informational update.
