Chapter 75 FINANCE AND TAXATION.

75-26    RESTAURANT MEALS EXCISE TAX - EXEMPTIONS; LIMITS ON APPLICATION

A.  The tax imposed under this ordinance shall not be levied on the following items when served exclusively for off-premises consumption:

    
     1.  Factory prepackaged candy, gum, nuts and other items of essentially the same nature.

2. Factory prepackaged donuts, ice cream, crackers, nabs, chips, cookies and items of essentially the same nature.

3.  Food sold in bulk.  For the purpose of this provision, a bulk sale shall mean the sale of any item that would exceed the normal, customary and usual portion sold for on premises consumption (e.g. a whole cake, a gallon of ice cream); a bulk sale shall not include any food or beverage that is catered or delivered by a food establishment for off-premises consumption.

       4.  Alcoholic and non-alcoholic beverages sold in factory sealed containers.

5. Any food or food product purchased with food coupons issued by the United States Department of Agriculture under the Food Stamp Program or drafts issued through the Virginia Special Supplemental Food Program for Women, Infants, and Children.

6.  Any food or food product purchased for home consumption as defined in the federal Food Stamp Act of 1977, U.S.C. Section 2012, as amended, except hot food or hot food products ready for immediate consumption.  For the purposes of administering the tax levied hereunder, the following items whether or not purchased for immediate consumption are excluded from the said definition of food in the Federal Food Stamp Act: 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.  This subsection shall not affect provisions set forth in subparagraphs (C) (3), (4) and (5) herein below.

B. A grocery store, supermarket or convenience store shall not be subject to the tax except for any portion or section therein designated as a delicatessen or designated for the sale of prepared food and beverages.

C. The tax imposed hereunder shall not be levied on the following purchases of food and beverages:

1. Food and beverages furnished by food establishments to employees as part of their compensation when no charge is made to the employee.

2. Food and beverages sold by day care centers, public or private elementary or secondary schools or food sold by any college or university to its students or employees.

3. Food and beverages for use or consumption and which are paid directly by the Commonwealth, any political subdivision of the Commonwealth or the United States.

4. Food and beverages furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, infirm, handicapped, battered women, narcotic addicts of alcoholics, or other extended care facility to patients or residents thereof.

5. Food and beverages furnished by a public or private non-profit charitable organization or establishment or a private establishment that contracts with the appropriate agency of the Commonwealth to offer meals at concession prices to elderly, infirm, blind, handicapped or needy persons in their homes or at central locations.

6. Food and beverages sold on an occasional basis, [not exceeding twelve (12) times per calendar year], by a non-profit educational, charitable or benevolent organization, church, or religious body as a fundraising activity, the gross proceeds of which are to be used by such organization exclusively for non-profit educational, charitable, benevolent or religious purposes.

     7. Food and beverages sold through vending machines.