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Roanoke council raises meals tax to 6.5% with two-year sunset, adds prompt-payment discount
Summary
On May 12 the Roanoke City Council approved a one-percentage-point increase to the city's food and beverage tax, raising the rate from 5.5% to 6.5% for a limited period and adding a 1.5% discount for sellers who timely remit the tax; the measure passed after an amendment to impose a two-year sunset was added.
Roanoke City Council voted May 12 to raise the city's tax on prepared food and beverage by 1 percentage point, from 5.5% to 6.5%, for a limited period and to add a 1.5% discount for sellers who pay on time. The amended ordinance includes a formal two-year sunset and passed after a second roll-call vote of 5-1.
Councilor Boleson, who supported the increase, acknowledged the difficulty of the decision: "It gives me no pleasure to vote today to increase the meals tax by 1% to a total of 6.5%. Unfortunately, this was an increase in revenue we need due to the deferred maintenance and other funding priorities we must correct," he said.
The council first debated whether to…
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