Finance Home  |  Food and Beverage Tax
brown-horizontal-line

Food and Beverage Tax 2014 Ordinance Changes

County Code Chapter 15, Taxation, Article XII, Food and Beverage Tax

On July 2nd, the Board of Supervisors amended 

County Code Chapter 15, Taxation, Article XII, Food and Beverage Tax

to mirror State legislation changes.  Click here to view the amended sections.


Effective January 1, 1998 a tax was levied on the purchase of all prepared food and beverages sold in the County of Albemarle.  The Food and Beverage tax is 4% of the total cost.  

The Food and Beverage tax is due to the County of Albemarle no later than the 20th day of the following month. Payment booklets may be obtained from the Business License department in the County Office Building. There is a 3% discount for those who make payments by the 20th of each month. There is a 10% penalty or $10.00 which ever is greater for any late payment.

Establishments that will be responsible for collecting Food and Beverage tax are:   

Restaurants

Doughnut Shops

Delicatessens

Cafeterias

Bakeries

Bowling Alley

Motels

Hotels

Lunch Counters

Caterers

Coffee Shops

Public Clubs

Private Clubs

Convenience Store

Gas Stations

Grocery Store Deli


Definitions you may need to know:

Food
Any and all edible refreshments or nourishment, liquid or otherwise, purchased in or from a restaurant or from a caterer, except snack foods.

Beverage
Any alcoholic beverages defined in Section 4.(2) of the Code of Albemarle and non-alcoholic beverages, any of which are served as part of a meal.

Snack food
Chewing gum, candy, popcorn, unopened soft drinks, peanuts, unopened bags of chips, cookies, doughnuts, nabs, etc.

Caterer
A person who furnishes food on the premises of another for compensation.

Restaurant
Any place where food is prepared for service to the public whether on or off the premises, any place where food is served to the public, or any place or operation that prepares or stores food for distribution to persons of the same business operation or of a related business operation for service to the public.


There are exemptions to the Food and Beverage tax including food and beverages sold by:

  • Volunteer fire departments and rescue squads; nonprofit churches or other religious bodies; or educational, charitable, fraternal, or benevolent organizations the first three times per calendar year and, beginning with the fourth time, on the first $100,000 of gross receipts per calendar year from sales of food and beverages (excluding gross receipts from the first three times), as a fundraising activity, the gross proceeds of which are to be used by such church, religious body or organization exclusively for nonprofit educational, charitable, benevolent, or religious purposes;
  • Churches that serve meals for their members as a regular part of their religious observances;
  • Boardinghouses that do not accomodate transients;
  • Cafeterias operated by industrial plants for employees only;
  • Restaurants to their employees as part of their compensation when no charge is made to the employee;
  • Public or private elementary or secondary schools, colleges, and universities to their students or employees;
  • Hospitals, medical clinics, convalescent homes, nursing homes, or other extended care facilities to patients or residents therefore;
  • Day care centers

For additional exemptions, please review Chapter 15, Article XII, Section 15-1202 of the

Albemarle County Code 

Any further questions or concerns, please contact (434) 296-5852.