Prepared Food, often encompassing ready-to-eat meals and beverages, is subject to a specific tax in York County, Virginia. This 4% tax is levied in addition to the 7% state sales tax, resulting in a total of 11% tax on eligible prepared food purchases. Businesses selling prepared food are responsible for collecting this tax from consumers and remitting it to the Commissioner of the Revenue’s Office on a monthly basis.
Understanding the Prepared Food Tax
The Prepared Food and Beverage/Meals Tax is applicable to ready-to-consume food and beverages sold by businesses in York County. This includes restaurants, cafes, grocery stores selling prepared meals, and other similar establishments. The tax is calculated as 4% of the total cost of the prepared food or beverage. This is added to the existing 7% state sales tax, leading to a combined tax rate of 11% for consumers. Businesses are required to clearly display the tax on customer receipts and ensure accurate collection.
Business Responsibilities and Reporting
Businesses selling prepared food in York County must obtain the necessary Prepared Food and Beverage/Meals Tax forms. These forms are typically mailed to businesses after they file their Business License application. Businesses are required to retain a copy of the form for their records and complete the filing process online through the provided online form. The collected Prepared Food and Beverage Taxes, along with the associated report, are due to the Commissioner of the Revenue by the 20th of the following month.
York County Code § 21.153 mandates that sellers of prepared food submit monthly reports detailing the amount of food charges collected and the corresponding tax collected. These reports, accompanied by the tax remittance, must be submitted by the 20th of each month, covering the tax collected during the preceding month. Failure to comply with these regulations may result in penalties.
State Sales Tax Considerations
As of July 1, 2018, a 1% regional sales and use tax was implemented in York County, James City County, and the City of Williamsburg. This tax, authorized by Senate Bill 942, increased the general sales tax rate in these localities to 7%. This regional tax is in addition to the existing state sales tax and the prepared food tax. More detailed information regarding the Historic Triangle regional tax can be found on the Virginia Department of Taxation’s website.
Prepared Food Tax Compliance
Staying informed and compliant with prepared food tax regulations is crucial for businesses operating in York County. Accurate tax collection, timely reporting, and proper record-keeping are essential for avoiding potential penalties. Resources and assistance are available to help businesses understand and comply with these requirements. Contacting the Commissioner of the Revenue’s Office directly can provide clarification on specific situations and ensure accurate tax administration.
