For the purposes of this section, “public dance hall” means any place open to the general public where dancing is permitted; however, a restaurant located in any city licensed under subsection A of § 4.1-206.3 to serve food and beverages having a dance floor with an area not exceeding 10 percent of the total floor area of the establishment shall not be considered a public dance hall. Any locality may by ordinance regulate public dance halls in such locality and prescribe punishment for violation of such ordinance not to exceed that prescribed for a Class 3 misdemeanor. Such ordinance shall prescribe for (i) the issuance of permits to operate public dance halls, grounds for revocation and procedure for revocation of such permits; (ii) a license tax not to exceed $600 on every person operating or conducting any such dance hall; and (iii) rules and regulations for the operation of such dance halls. Such ordinances may exempt from their operation dances held for benevolent or charitable purposes and dances conducted under the auspices of religious, educational, civic, or military organizations. No county ordinance adopted under the provisions of this section shall be in effect in any town in which an ordinance adopted under the provisions of this section is in effect.