58.1-611.1 - Rate of tax on sales of food purchased for human consumption.
§ 58.1-611.1. Rate of tax on sales of food purchased for human consumption.
A. The tax imposed by §§ 58.1-603 and 58.1-604 on food purchased for humanconsumption shall be levied and distributed as follows:
1. From January 1, 2000, through midnight on June 30, 2005, the tax rate onsuch food shall be three percent of the gross sales price. The revenue fromthe tax shall be distributed as follows: (i) the revenue from the tax at therate of one-half percent shall be distributed as provided in subsection A of§ 58.1-638, (ii) the revenue from the tax at the rate of one percent shall bedistributed as provided in subsections B, C and D of § 58.1-638, and (iii)the revenue from the tax at the rate of one and one-half percent shall beused for general fund purposes.
2. On and after July 1, 2005, the tax rate on such food shall be one andone-half percent of the gross sales price. The revenue from the tax shall bedistributed as follows: (i) the revenue from the tax at the rate of one-halfpercent shall be distributed as provided in subsection A of § 58.1-638 and(ii) the revenue from the tax at the rate of one percent shall be distributedas provided in subsections B, C and D of § 58.1-638.
B. The provisions of this section shall not affect the imposition of tax onfood purchased for human consumption pursuant to §§ 58.1-605 and 58.1-606.
C. As used in this section, "food purchased for human consumption" has thesame meaning as "food" defined in the Food Stamp Act of 1977, 7 U.S.C. §2012, as amended, and federal regulations adopted pursuant to that Act,except it shall not include seeds and plants which produce food for humanconsumption. For the purpose of this section, "food purchased for humanconsumption" shall not include food sold by any retail establishment wherethe gross receipts derived from the sale of food prepared by such retailestablishment for immediate consumption on or off the premises of the retailestablishment constitutes more than 80 percent of the total gross receipts ofthat retail establishment, including but not limited to motor fuel purchases,regardless of whether such prepared food is consumed on the premises of thatretail establishment. For purposes of this section, "retail establishment"means each place of business for which any "dealer," as defined in §58.1-612, is required to apply for and receive a certificate of registrationpursuant to § 58.1-613.
(1999, cc. 366, 466; 2002, c. 13; 2003, c. 806; 2004, Sp. Sess. I, c. 3;2005, cc. 487, 521.)