The proposed amendments will revise subsection (a) to amend each instance of “thirty (30) days” to “month” and amend the additional penalty for each month, after the first month the meals tax remittance is due, from ten (10) percent to five (5) percent thereafter, up to a maximum of twenty-five (25) percent of the taxes collected, rather than twenty-five (25) percent in the aggregate.  Revised subsection (a) will further include language clarifying a penalty for failure to file an application or return shall be assessed on the day after such return or application is due, and a penalty for failure to remit the tax shall be assessed on the day after such tax is due to be remitted.

The proposed amendments will revise subsection (b) to remove civil penalty language for a filing a false or fraudulent return, as that is a criminal violation, and replace it with language detailing the assessment of interest at the rate of ten (10) percent per annum, upon the principal and penalties of the unpaid tax, from the day after the tax is due.  All amendments reflect changes to applicable sections of the Virginia Code since enactment of this code section.