THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, October 4, 1996 TAG: 9610040524
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: 56 lines
In Hampton Roads, shoppers likely pay meal taxes on ready-to-eat chicken in supermarket delis. But buy a pre-cooked chicken in other parts of the store - and the local tax may disappear.
Huh?
That's what consumers have been telling store owners for years. Even convenience store merchants and grocers say they're confused by complex city meal-tax guidelines and different rules for each Hampton Roads locality.
``I don't think any two stores have the same idea how to do this,'' said Sam Barfield, Norfolk's revenue commissioner, during a meeting in Norfolk's City Hall Building.
On Thursday, commissioners of revenue from Hampton Roads cities told representatives of supermarket and convenience-store chains that they'll try to streamline meal-tax laws among the localities.
The goal is to make meal-tax guidelines in each city as similar as possible, Barfield said. The new rules also would be updated to deal with a growing number of retailers offering prepared meals.
The cities' meal-tax rates, which range from 4.5 percent to 5.5 percent, likely will not be changed.
Jack Jackins, a field consultant for Southland Corp., owner of 7-Eleven stores, says he has no problem with charging meal taxes. But he says he is bothered by the lack of uniformity on what constitutes a meal. This confusion rankles some of his customers, who in turn badger his employees.
Most of the cities' meal-tax revenue comes from restaurants, which usually aren't a problem, commissioners said. The gray areas have formed around convenience stores and supermarkets, especially with the explosion in pre-packaged foods and ready-to-eat meals.
Here's a look at some of the discrepancies among the local meal-tax ordinances:
At a 7-Eleven in Norfolk, a single can of soda is taxed. But it's not at 7-Elevens in surrounding cities. A fountain drink, however, gets the meal tax in all Hampton Roads cities.
A half-dozen or more donuts in Norfolk is a meal. But in Newport News, it takes a dozen to make a meal.
Suffolk exempts all alcoholic beverages from the meal tax, while other Hampton Roads localities don't.
Some cities, such as Norfolk, always count pre-packaged sandwiches as meals, while others don't tax them if the sandwiches are made by manufacturers.
Of all Hampton Roads cities, Norfolk appears to be the most out of sync with other cities. Unlike others, Norfolk charges taxes on pre-packaged single servings like chips. It also doesn't charge a meal tax when the purchase is 45 cents or less.
After more uniform guidelines are hammered out, the plan will be forwarded to city councils in Chesapeake, Norfolk, Portsmouth, Virginia Beach, Suffolk, Hampton and Newport News, said Ray A. Conner, Chesapeake's revenue commissioner. by CNB