Localities; authority to levy taxes.

Local tax authority. Modifies the restrictions that currently apply to county admission, cigarette, food and beverage, and transient occupancy taxes. The bill authorizes all counties to tax cigarettes at up to 40 cents per pack. The bill limits the cigarette tax rate of cities and towns to 40 cents per pack or the rate in effect on January 1, 2020, whichever is greater. Under current law, there is no limit on the cigarette tax rate that may be imposed by a city or town.The bill authorizes all counties, except the counties of James City and York, to impose an admissions tax at a rate of up to ten percent. Under current law, only certain counties may impose an admissions tax, and the rate generally is capped at 10 percent.The bill authorizes all counties to impose a food and beverage tax (commonly referred to as the meals tax) at a rate of up to six percent. Under current law, counties are limited to a four percent rate. The bill removes the requirement that a county hold a referendum before imposing a meals tax. However, if a county held a meals tax referendum that failed within the past two years, it would be prohibited from imposing a tax by ordinance until July 1, 2022.The bill authorizes all counties to impose a transient occupancy tax at a rate of up to five percent; however, if a county currently imposes the tax at a higher rate, it may continue to impose the tax at that rate. Under current law, counties generally are limited to a maximum rate of two percent, although certain counties may impose the tax at higher rates.The bill directs the Division of Legislative Services to convene a work group to develop recommendations as to any additional legislative changes that may be needed to effectuate the provisions of the bill. The bill also directs the Division to study the different legal authorities and requirements that apply to cities and counties that are not related to taxation. The bill directs the Department of Taxation to convene a workgroup to study modernizing the cigarette tax stamping process and unifying it so that it would be administered only at the state level. The bill has a delayed effective date of July 1, 2021, and incorporates SB484, SB921, SB682, and SB799.