Small retailers tell Norfolk council events-tax rules misclassify low-attendance gatherings

Lindsay Sims, owner of Maison Soleil, a small gift shop in Ghent, told Norfolk City Council during public comment on May 20 that a municipal change to an events/emissions tax is being applied to small private gatherings and low-attendance classes in ways that threaten small retailers.

Sims said an ordinance definition she cited (article 9, section 24-288 in her description) lists “amusement or entertainment” broadly—including lectures, conferences, plays and performances—and that the Commissioner of Revenue’s office had told her the city treats registered fee-based classes (for example, a small paint-and-sip with fewer than 20 attendees) as subject to the tax. She said many small instructors have declined to offer events rather than pay an additional tax on top of sales taxes, and that business associations in Ghent had not been notified of the application.

Sims asked the council for better guidance, clearer communication from the Commissioner of the Revenue’s office and consideration of small-business impacts before enforcement. The city clerk and council did not take immediate action at the meeting; Sims’ remarks were entered as public comment for council and staff consideration during ongoing administrative enforcement and outreach.

What’s next: the issue is administrative (tax classification and enforcement) rather than legislative in this meeting record; Sims requested clearer guidance and that the city consider small-business impacts when applying registration or event taxes.