§ 26-671. Exemptions; limits on application.
(a)
The tax imposed under this article 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)
Pastry, dairy and snack food items, such as doughnuts, ice cream sold in greater than single-serving quantities, crackers, nabs, chips, cookies, and the like and items of essentially the same nature.
(3)
Food sold in bulk. For the purposes of this subsection, 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 nonalcoholic 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 State 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, 7 USC § 2012, as amended, except hot food or hot food products ready for immediate consumption. For the purposes of administering the tax levied under this article, the following items, whether or not purchased for immediate consumption, are excluded from the 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 nonfactory-sealed beverages. This subsection shall not affect Subsections (c)(3), (4) and (5) of this section.
(b)
A grocery store, supermarket or convenience store shall not be subject to the tax except for any portion or section therein containing prepared food and beverage operations.
(c)
The tax imposed under this article 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 served on site and paid for as a part of a tuition, meal or similar plan.
(3)
Food and beverages furnished by a hospital; medical clinic; convalescent home; nursing home; home for the aged, infirm, handicapped, battered women, narcotic addicts or alcoholics; or other extended care facility to patients or residents thereof and the spouses and children of such persons.
(4)
Food and beverages furnished by a public or private nonprofit 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.
(5)
Food and beverages sold the first three times per calendar year, and beginning with the fourth time, on the first $100,000.00 of gross receipts per calendar year from sales of meals, excluding gross receipts from the first three times, by a nonprofit 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 nonprofit educational, charitable, benevolent or religious purposes.
(6)
Food and beverages sold through vending machines.
(Code 1993, § 27-179; Code 2004, § 98-364; Ord. No. 2014-114-87, § 1, 5-27-2014)
State Law reference— Similar provisions, Code of Virginia, § 58.1-3840.
(Code 1993, § 27-179; Code 2004, § 98-364; Ord. No. 2014-114-87, § 1, 5-27-2014)
State law reference
Similar provisions, Code of Virginia, § 58.1-3840.