Meals and Prepared Food Tax - NEW
The City of Martinsville imposes a local tax on all prepared meals and beverages sold for immediate consumption either on or off the seller's premises. The tax is collected by every restaurant, caterer, convenience store, grocery delicatessen, etc. engaged in the business of selling prepared food and beverages in Martinsville.
These businesses must register with the Commissioner of the Revenue, collect the tax, in trust, and report and remit the meals tax by the twentieth day of each month following the month of the sale. A 10% penalty is imposed on late filings that are less than 30 days late. An additional 10% penalty is imposed on late filings 31-60 days late, and a maximum 25% penalty is imposed for late filing more than 60 day's late.
The tax rate is 6.5% of the total cost of the prepared food or beverage. Prepared food and beverage items are also subject to the 5.3% Virginia Retail Sales and Use Tax.
City of Martinsville Meals Tax remittance forms may be downloaded from the link below:
!! IMPORTANT MEALS TAX RATE CHANGE EFFECTIVE SEPTEMBER 1, 2017 !!
On May 9, 2017 Martinsville City Council adopted an ordinance increasing the city's tax on prepared food and beverages from 6.5% to 7% effective September 1, 2017. The 7% meals tax is in addition to the 5.3% Virginia Retail Sales and Use Tax. Meals tax monthly remittance forms for the 7% rate can be downloaded below:
Adopted City Ordinance for Meals Tax Increase effective September 1, 2017