December 22, 2017
Re: Appeal of Final Local Determination
Taxpayer: *****
Locality Assessing Tax: *****
Local Food and Beverage Tax
Dear *****:
This notice of jurisdiction is issued upon the application for correction filed by you on behalf of ***** (the “Taxpayer”) with the Department of Taxation. The Taxpayer seeks correction of assessments of local food and beverage tax issued by the ***** (the “City”) for the 2012 through 2014 tax years.
The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections and public document cited are available on-line in the Laws, Rules and Decisions section of the Department's web site, located at www.tax.virginia.gov.
FACTS
The City issued assessments of food and beverage tax to the Taxpayer for the 2012 through 2014 tax years. The Taxpayer filed an appeal with the Department, contending that a portion of its sales were not subject to the tax.
ANALYSIS
Virginia Code §§ 58.1-3703.1 and 58.1-3983.1 authorize the Department to consider appeals of final local determinations of certain taxes. The ability to file an administrative appeal to the Department for a local tax is limited to the following:
BPOL tax, BTPP tax, machinery and tools tax, merchant's capital tax, local mobile property tax and consumer utility tax.
DETERMINATION
The Department is not authorized to consider appeals of the local food and beverage tax, commonly known as the meals tax. Therefore, I cannot issue a determination regarding the validity of the meals tax assessments issued to the Taxpayer by the City. See Public Document (P.D.) 13-82 (5/29/2013).
The Taxpayer may appeal assessments of the meals tax to the circuit court under the provisions of Virginia Code § 58.1-3984 A. In the Taxpayer's case, such an appeal must be filed with the circuit court: (1) within three years from the last day of the tax year for which the assessment is made, (2) within one year from the date of the assessment, or (3) within one year from the date of the local official's final determination under Virginia Code § 58.1-3981, whichever is later. No information has been provided to indicate that a final determination was issued by the City.
If you have any questions regarding this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1500.M