Tax Code

VA State Code § 58.1-3833 and Frederick County Code § 155-117 through § 155-130

• A 4% tax shall be imposed on any prepared food and drink, including alcoholic beverages, offered or held out of sale by a restaurant, caterer or other vendor for the purpose of being consumed. All such food and drink shall be included whether intended to be consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, dinner, supper or by some other name and without regard to the manner, time or place or service.

• A restaurant is defined as any place in the County from which or in which meals are sold, including but not limited to places of business known as bars, cafes, cafeterias, coffee shops, clubs, convenience stores, delicatessens, diners, dining rooms, eateries, grills, lunch counters, restaurants or snack bars.

• A seller is any restaurant or caterer selling meals or the person operating such business.

• The tax shall be collected by the seller and paid by the purchaser at the time the charge for the meal becomes due whether payment is made in cash, by credit card, or otherwise.

• All amounts collected as taxes shall be deemed to be held in trust by the seller collecting them until remitted to the County.

• The County requires all prospective sellers of meals to register for collection of the imposed tax.

• Monthly reports must be delivered and monies remitted on or before the 20th day of the calendar month following the month being reported for the prior month's gross sales.  A 10% penalty will be added to all meals taxes that are unpaid by the due date.