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Restaurants & Drinking Places Occupation Tax

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1. Why did the City enact a Restaurants & Drinking Places Occupation Tax?

La Vista, to ensure continued fiscal strength of the City and address challenges resulting from rapid growth, high demand for resources, public infrastructure and pressure for additional staff, felt that it was prudent to implement Restaurant & Drinking Place Occupation Tax. This strategy was recommended so the burden is equally shared by non-residents and residents alike who utilize City services and infrastructure.

2. Who would be subject to the tax?

Your business is subject to this tax if you are engaged in a restaurant or drinking place in the City.

3. How is the tax calculated?

The tax would be calculated as a percentage of gross receipts of a restaurant or drinking place from the sale of food or beverage as defined in Ordinance No. 1365 and La Vista Municipal Code § 113.10.0. Generally speaking, gross receipts excludes sales of items such as groceries.

4. When does the occupation tax become effective?

October 1, 2019.

5. How often is the tax due?

Returns must be submitted to the City monthly on forms provided online and at City Hall. The tax is due on or before the last day of each month, calculated based on gross receipts of the immediately preceding month.

6. When is the first return due?

The first monthly return is due no later than November 30, 2019, calculated using gross receipts from October 1 through October 31, 2019. Mailed returns postmarked by the last day of the month will be considered timely filed.

7. Would the occupation tax apply only to restaurants?

No. It applies to any restaurant or drinking place subject to the occupation tax, such as but not limited to cafes, bakeries, coffee shops, food trucks, caterers, and restaurants or drinking places in grocery or convenience stores.

8. Are restaurants and drinking places to include gross receipts from the sale of alcoholic beverages for purposes of calculating the occupation tax?

Yes. For purposes of calculating the occupation tax, restaurants and drinking places are to include gross receipts from all beverages, whether alcoholic or non-alcoholic.

9. Are restaurants and drinking places to include gross receipts from sales of “to go” or “take out” food?

Yes. Gross receipts include all receipts from “take out,” “drive-through,” or “to go” food.

10. What is the tax rate?

The tax rate is 1.5% of the total gross receipts of restaurants and drinking places for food and/or beverages.

11. How much money is this tax projected to generate?

The City projects that it will collect up to $700,000 annually.

12. How does a restaurant or drinking place calculate the amount of tax it owes?

A restaurant or drinking place calculates the tax based on its gross receipts from food and beverages. The definition of “gross receipts” is available in Ordinance No. 1365 and in the La Vista Municipal Code §113.10.0.

13. What is the administration allowance?

As reimbursement for any additional administrative costs and expenses connected with the tax, at the time of monthly payment, a restaurant or drinking place may elect to withhold 2% of the amount that is otherwise due and payable to the City.

14. Can a restaurant or drinking place decide to recover the cost of the tax from its customers?

Yes. Though the tax is imposed on restaurants and drinking places, a restaurant or drinking place may decide to recover the cost of the tax from its customers. If a restaurant or drinking place decides to recover the cost of the tax from customers by itemizing it on customer bills, State law requires that the itemized amount is included for purposes of calculating applicable State and local sales taxes. The Nebraska Department of Revenue has resources regarding the proper calculation of sales taxes. (See for example http://www.revenue.nebraska.gov/info/occupation_tax.html.) See for example.

15. How is the tax to be remitted to the City?

Returns and tax payments shall be filed and paid (i) hand delivery or by United States mail, properly addressed, postage prepaid and postmarked no later than the last day of the appropriate month, or (ii) by electronic filing and payment by Automated Clearing Housing or Credit Card no later than the last day of the appropriate month.

16. How do I submit the remittance form?

The remittance form should be submitted with your payment via hand delivery or United States mail. If you are submitting the tax payment electronically, then the completed remittance form may be submitted via email to cityclerk@cityoflavista.org.

17. Where can I find additional remittance forms?

The remittance form is available on the City’s website: www.cityoflavista.org/restaurants. Paper copies are also available at City Hall.

18. Do other cities in Nebraska have this tax?

Yes. Seven other cities have a similar occupation tax:
Omaha 2.50% Grand Island 1.50% Fremont 1.25%
Ralston 2.50% Kearney 1.00%
Lincoln 2.00% Norfolk 2.00%

19. Who can I contact if I still have questions?

Please contact Deputy City Clerk Rachel Carl at (402) 331-4343.