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New Kent Meals Tax Referendum November 2, 2004 What is a meals tax? A meals tax is a tax on the sale of prepared food and beverages at restaurants, lunchrooms, cafeterias, coffee shops, cafes, taverns, delicatessens, push cart operations and hot dog stands. Grocery and convenience stores would also collect the tax on ready-to-eat foods sold, such as at their delicatessen or salad bar. How will a meals tax affect my bill at a restaurant? Counties can assess a meals tax of up to 4%. Ata that rate a $5 fast food meal would have a 20 cent meals tax added. A $50 meal at a restaurant would result in a meals tax of $2. How will a meals tax affect my grocery bill? A meals tax is not a tax on groceries. It is not collected on a loaf of bread, a package of ham, or a head of lettuce. It would be collected on a ready-to-eat ham sandwich purchased from the deli, or on lettuce purchased from a salad bar. What neighboring localities have a meals tax? When you dine in some of our neighboring localities, it is likely you are paying a meals tax to that jurisdiction. Some of those are:
James City County: 4% How much will New Kent collect from a meals tax and who will pay the tax? County officials estimate that New Kent will collect more than $225,000 per year from a 4% meals tax, in contrast to a 1 cent increase in the real estate property tax that would bring in approximately $133,000 per year. 40,000 vehicles per day travel along Interstate 64 through New Kent, and over one-half of the restaurant sales in New Kent are from restaurants near I-64. With public utilities coming to Bottoms Bridge, the County expects both new and expanded eating establishments to draw an even larger number of tourists stopping in New Kent for a meal. How will New Kent spend the money it collects from a meals tax? The New Kent County Board of Supervisors has committed to send 50% of meals tax revenue on school construction, 25% on parks & recreation and 25% on economic development and tourism.
Copyright 1998-2012 by Stran L. Trout |
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