June 30, 2020
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 ***** (the “Taxpayer”) with the Department of Taxation. The Taxpayer seeks correction of an assessment of local food and beverage tax issued by ***** (the “County”).
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 County issued an assessment of food and beverage tax to the Taxpayer. 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 Business, Professional and Occupational License (BPOL) tax, business tangible personal property 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 County. See Public Document (P.D.) 13-82 (5/29/2013) and P.D. 17-218 (12/28/2017).
In this case, the applicable jurisdictional statute is Virginia Code § 58.1-3980, which grants local commissioners of the revenue general jurisdiction over appeals involving local taxes, which would include the tax on food and beverages. 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 assessments are 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.
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/3414.B