Hospitality Tax Ordinance

ARTICLE II. – HOSPITALITY TAX 

Sec. 22-19. – Imposed. 

(a) There is hereby imposed a local hospitality tax of two percent on the gross proceeds of the sale of prepared meals and beverages in establishments within the Town. 

(b) Payment of the hospitality tax established hereby shall be the liability of the customer. 

Sec. 22-20. – Collection. 

The tax imposed by this article shall be collected from the customer when payment for meals or beverages is tendered and shall be held in trust for the benefit of the Town until remitted as provided in section 22-21. 

Sec. 22-21. – Payment on monthly basis. 

Payment of the hospitality tax established herein shall be remitted by the vendor to the Town on a monthly basis, along with such return or form as may be established by the Town for such purposes, not later than the 20th day of the month and shall cover the tax due for the previous month. Any tax not timely remitted shall be subject to a penalty of five percent of the sum owed for each month or portion thereof until paid. The failure to collect from the customer the tax imposed by this article shall not relieve the vendor from making the required remittance. 

Sec. 22-22. – Penalty. 

The failure of any vendor subject to this article to remit to the Town the tax imposed by the provisions of this article shall constitute a misdemeanor punishable by a fine of not more than $500.00 or imprisonment for up to 30 days, or both. 

Sec. 22-23. – Special account created. 

There is hereby established a special account to be known as the local hospitality tax account into which the taxes remitted shall be deposited by the Town and used solely for the purposes provided by law.