By Nancy Lindsey
After five failed attempts to get a meals tax passed by referendum, the Patrick County Board of Supervisors is looking at another potential means of collecting a 4% tax on meals sold in Patrick County.
The issue is still on the Nov. 8 ballot—for the sixth time—but the board voted 4-1 last month to join a coalition of counties that plans to ask the General Assembly to amend existing law and allow counties to collect the meals tax without a referendum.
The York County Board of Supervisors is spearheading the initiative, which is expected to be considered by the legislature during the 2017 term.
Currently, cities and towns can impose a meals tax on restaurants in their jurisdictions without holding a referendum—which is what the town of Stuart did several years ago, leading to more than $200,000 in additional revenues each year.
The letter from Jeffrey D. Wassmer, chairman of the York County board, stated that the request would be to enable counties, “on the initiative and action of their governing bodies (and without referendum) to establish a meals tax at a rate determined appropriate by the governing body, but not to exceed 8%.”
If the sixth referendum fails and the coalition’s measure passes, Patrick County would then be free to impose an 8% meals tax on meals served in the county. However, because the town’s rate is 4%, the county would be unlikely to go higher.
Wassmer said that previous attempts to equalize all taxing authority of cities, town and counties have failed in the General Assembly, and his board decided to tackle only the meals tax authority at this time.
According to information compiled by the Weldon Cooper Center for Public Service, 47 of Virginia’s 95 counties assessed a meals tax in 2014. Forty-six counties reported a tax rate of between 3.1% and 4%, and one, Dickenson County, had a tax rate of 2%.
“It is important to note that towns and cities are not subject to the referendum process or the 4% cap on the meals tax rate,” Wassmer wrote. “All 38 of Virginia’s cities assess a meals tax, with the lowest rate being 4%, the highest 7.5%, and the median being 6%. The median rate assessed by the 104 towns with a meals tax is 5%, with a minimum of 2% and a maximum of 8%.”
York County currently has a 4% meals tax rate, but would like to raise it, the chairman said, noting that it is surrounded by jurisdictions with higher rates: Newport News, 7.5%, Poquoson, 6%, and Williamsburg, 5%.
The meals tax in Virginia applies to prepared food and beverages (ready-to-eat) at restaurants, lunchrooms, cafeterias, coffee shops, cafes, taverns, delis and food trucks, as well as alcoholic and non-alcoholic beverages served with a meal.
The meals tax does not apply to groceries or food sold through vending machines.
Mayo River District Supervisor Lock Boyce said the county needs a meals tax to take some of the burden off the real estate and personal property taxes to generate revenues.
Most people eating at county restaurants would not mind paying 4% extra, especially not at Primland Resort, which has clientele who are used to paying higher prices for “world-class food,” Boyce said.
Boyce urged County Administrator Tom Rose to contact York County and say Patrick backs the coalition 100%.
Dan River District Supervisor Roger Hayden said he thought the issue should be “left up to the people to decide.”
Those voting in favor of the motion were Boyce, Peters Creek District Supervisor Rickie Fulcher, Smith River District Supervisor Crystal Harris, and Blue Ridge District Supervisor Karl Weiss.
Hayden voted against the motion.
