New Meals Tax on the Fluvanna Menu

By. Bryan Rothamel, Field OfficerSee the source image

The Fluvanna County voters will decide if the county adds a meals tax in 2019.

The supervisors unanimously voted to send the issue to the people. Staff and the county attorney will ask the circuit judge to include the measure on the November ballot.

“This is [a tax] opportunity we can take advantage of,” said county Director of Community and Economic Development Jason Smith.

Fluvanna currently only taxes residents by assessing personal property and real property. But non-residents don’t pay any taxes beyond the county’s portion of the state sales tax.

“Every time we go to all the towns, cities, counties [that charge meals tax] we help pay their taxes,” said Board of Supervisors Chairman Mike Sheridan (Columbia District).

There are currently 47 of the 95 counties in Virginia with a meals tax, including neighboring Louisa. Counties have the requirement of a referendum to enact the tax. Also, counties limited to charge a maximum of 4 percent. Only one county that has a meals tax does not charge the maximum.

Towns and cities are not required to have a referendum to enact the tax. There are 110 towns with the tax and all 38 cities have it.

If the referendum fails, the county supervisors can not bring it back to the voters for three years. County residents can petition to include a meals tax vote every year. Staff relayed it took Louisa three tries over nine years to get the measure passed.

“[The meals tax] helps us keep from having one of the highest [real property] tax rates in the area,” said Supervisor Tony O’Brien (Rivanna District).

The meals tax would be applied to any business that prepares food that is meant to be consumed immediately. This would include a grocery store that sells prepared food to restaurants to caterers operating in the county when the food is served. Caterers that prepare food in Fluvanna to be sold in another locality would pay taxes to the locality where the product is sold.

Businesses would be required to submit tax forms every month to the Commissioner of Revenue.

Staff projects based on the county size and the estimated 21 impacted businesses in operation, Fluvanna will bring in $300,000 to $600,000 a year.

If approved by the circuit judge, the item will be on the November 6 ballot. Staff has mapped out an education campaign to help get the item passed on the first try. Ideas include town halls and marketing.

The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS® and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

 

Photo Credit: https://tax.thomsonreuters.com/

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