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19850409 1985-7ORDINANCE NO. 1985-7 AN ORDINANCE IMPOSING AN EXCISE TAX OF ONE PERCENT ON MEALS SOLD IN THE CITY OF FAIRFAX, VIRGINIA. BE IT ORDAINED by the City Council of the City of Fairfax, Virginia, that Chapter 8 of the Code of the City of Fairfax be and the same is hereby amended by the addition of Article XI, Tax On Meals Sold By Restaurants, which shall read in its entirety as follows: "ARTICLE XI. Tax On Meals Sold By Restaurants Sec. 8-59. Definitions. For the purposes of this Article, the following words and phrases shall have the meanings respectively ascribed to them by this section: Meal. Ail food and drink, including alcoholic bever- ages, offered for sale in a form ready for consump- tion. The term "meal" shall not be deemed to include food or drink sold by any nonprofit or government subsidized school or institution of learning to its students or employees. Purchaser. Any person who purchases a meal. Restaurant. Any place located in the city from or in which meals are sold, including, but not limited to, drug stores, eating houses, public and private clubs, bars, cafeterias, grills, diners, dining rooms, eater- ies and places of business known as restaurants, including fast food and drive-in restaurants. Seller. Any person who sells a meal. Commissioner of Revenue. of the City of Fairfax. The Commissioner of Revenue Sec. 8-61. Levy and Amount of Tax. There is hereby imposed and levied by the city, in addition to all other taxes, fees and charges of every kind now or hereafter imposed by law, a tax upon each and every meal sold in the city in or from a restaur- ant, whether prepared in the restaurant or not and whether consumed on the premises or not, based upon the amount which the purchaser is charged by the seller for the meal, of one cent when the amount of the charge is more than fourteen cents but less than one dollar ($1.00), and otherwise at the rate of 1% of the total charge when the amount of the charge is greater than one dollar, one-half cent being treated as one cent. Sec. 8-61. Collection. The tax shall be collected by the seller from the purchaser at the time that the charge for the meal shall be due and payable, whether such payment shall be made in cash or on credit by means of a credit card or otherwise. The seller shall separately state the amount of the tax and add such tax to the amount charged for the meal. The tax shall be paid to the city for its use by the seller as hereinafter provided. 1985-7 - 2 - Sec. 8-63. Tax Collected to be Held in Trust. Ail money collected as taxes under this Article shall be deemed to be held in trust by the seller who has collected the same until remitted to the city as hereinafter provided. Sec. 8-64. Reports and Remittances. Every seller shall make a report for each calendar month, which report shall show the amount of the meal charges collected and the tax required to be collected upon form prescribed and provided by the Commissioner of Revenue, and shall sign and deliver such report to the Commissioner of Revenue with remittance of the collected tax. Such reports and remittances shall be made to the Commissioner of Revenue on or before the last day of the calendar month following the month for which the report is made. The tax required to be collected and remitted to the Commissioner of Revenue may be computed by the seller on the basis of one percent of the total amount of meal charges collected for the calendar month. Sec. 8-65. Meals Furnished to Employees. Meals furnished to employees in the course of or in connection with their employment in restaurants shall not be considered sales of meals under this Article. Sec. 8-66. Advertising Payment or Absorption of Tax Prohibited. No person shall advertise or hold out to the public in any manner, directly or indirectly, that all or any part of the tax imposed under this Article will be paid or absorbed by him or by anyone else, or that he or anyone else will relieve any purchaser of the payment of all or any part of such tax. Any person who violates this section shall be guilty of a misdemeanor. Sec. 8-67. Penalty and Interest for Failure to Remit Tax When Due. If any person whose duty it is to do so shall fail or refuse to remit to the Commissioner of Revenue the tax required to be collected under this Article within the time and in the amount specified in this Article, there shall be added to such tax by the Commissioner of Revenue a penalty in the amount of 10% thereof and interest thereon at the judgment rate, which shall be computed upon the tax and penalty for each month or portion thereof from the date when such tax was due and payable. Sec. 8-68. Procedure upon Failure or Refusal to Collect or Remit Taxes. If any person whose duty it is to do so should fail or refuse to collect the meals tax or to make timely reports and remittances as required by this Article, the Commissioner of Revenue shall proceed in such manner as he may deem best to obtain the facts and information upon which an estimate of the tax due can be made. As soon as the Commissioner of Revenue procures such facts and information as he is able to obtain, he shall proceed to determine and assess against such person failing or refusing to comply with the provisions of this Article such tax, penalty and interest as is provided for in this Article and shall notify such person by registered mail at his last known address of the amount of such tax, interest and 1985-7 - 3 - penalty. The total amount of tax, interest and penalty shall be payable within ten days of the mailing of such notice. Sec. 8-69. Preservation of Records. It shall be the duty of every person required by this Article to collect the meals tax and remit the same to the city to keep and preserve for a period of two years complete records showing all purchases taxable under this Article, the amount charged each purchaser for each such purchase, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this Article. For the purpose of admini- stering and enforcing the provisions of this Article, the Commissioner of Revenue or his duly authorized agents shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person and to make transcripts or copies of any and all parts thereof. Sec. 8-70. Persons Going Out of Business. Should any person required to collect and remit to the city a meals tax under this Article cease to operate or otherwise dispose of his business, any tax payable under this Article to the city shall become immediately due and payable, and such person shall immediately make a report and pay the tax due. Sec. 8-71. Penalty for Violation of Article. Any person violating or failing to comply with any of the provisions of this Article shall be guilty of a Class 1 misdemeanor. Each such violation or failure and each day's continuance thereof shall constitute a separate offense. Any such conviction shall not relieve any person from the payment, collection or remittance of such tax, penalties and interest as is provided in this Article." The provisions of this Ordinance shall become effective on June 1, 1985. FIRST READING: March 26; 1985 PUBLIC HEARING: April 9, 1985 ADOPTED: April, 9~ 1985 ATTEST: it/y~Cle~k ~' ~/~ Cl