2010-16ORDINANCE NO. 2010-16
AN ORDINANCE AMENDING CHAPTER 90, ARTICLE VI OF THE CODE OF THE
CITY OF FAIRFAX, VIRGINIA, PERTAINING TO THE TAX ON MEALS
BE IT ORDAINED, by the City Council of the City of Fairfax, Virginia, that Chapter 90,
Article VI of the Code of the City of Fairfax, Virginia, pertaining to the tax on meals, is
hereby amended to add a new Section 90-275, as follows:
ARTICLE VI. TAX ON MEALS
"Sec. 90-275. Bond or letter of credit to secure tax.
(a) Generally. The commissioner of the revenue may, when deemed necessary to secure the
collection and remittance of the tax imposed under this article, require any person subject to
such tax to post annually a bond with surety or, in the alternative, to provide an irrevocable
letter of credit as follows:
(1) New food establishments, including new catering operations. In an amount equal
to the sum total of food and beverages tax assessable on estimated gross receipts for
the first quarter of operation or in the amount of $1,000.00, whichever is greater.
Estimated gross receipts shall be derived from the application for a business license
filed by the owners or operators of the food establishment with the commissioner of
the revenue pursuant to Section 14-35 of this Code.
(2) Existing food establishments, including existing catering operations. In an
amount equal to the sum total of the food and beverages tax collected by the food
establishment during the highest quarter of the previous tax year or in an amount of
$1,000.00, whichever is greater.
(3) Itinerant food and beverages vendors. In an amount not less than $1,000.00 as
determined by the commissioner of the revenue.
(b) Required under certain circumstances. Surety may be deemed necessary in every case
where:
(1) A food establishment, including catering operations, has been in business for less
than two (2) years' time;
(2) Food and beverages are sold at a temporary location; or
(3) Any person required to report and remit the food and beverages tax has failed to
do so in a complete and timely manner during previous tax years.
(c) Written notice. Where surety is deemed necessary, the commissioner of the revenue shall
provide written notice of this requirement to the person responsible for collecting and
remitting the food and beverages tax. All bonds or letters of credit shall be posted with the
commissioner of the revenue within twenty (20) days of the date of such written notice.
Failure to post the bond or letter of credit in a timely manner shall be deemed a violation of
this article and punishable as a class 1 misdemeanor.
(d) Authority of commissioner of the revenue. The commissioner of the revenue is authorized
to develop, implement and utilize such forms, regulations and procedures as may be useful
and expedient in implementing this section. Any bond or letter of credit posted with the
commissioner of the revenue under this section shall be approved as to form by the city
attorney. Bonds and letters of credit must be issued by a surety or financial institution having
its principal place of business in the state, unless such requirement is waived by the
commissioner of the revenue in consultation with the city attorney.
This ordinance shall become effective as provided by law.
INTRODUCED: April 13, 2010
PUBLIC HEARING: May 25, 2010
ENACTED: May 25, 2010
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ATTEST:
City Clerk
Votes
Councilwoman Cross Nay
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilman Rasmussen Aye
Councilman Stombres Aye