Appomattox to Increase Meals Tax - WSET.com - ABC13

Appomattox to Increase Meals Tax

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Appomattox, VA - Town council recently voted 5-1 to increase the meals tax from 5% to 8% due to budget concerns. Some residents tell ABC 13 they are concerned.

The meals tax increase applies to both food and beverages that are purchased from a food establishment, whether it's consumed on the premises or not.

Glenda Martin lives in Appomattox County and eats out at least once a week.

"It really puts a hurting on the consumer," said Martin.

This time she brought her daughters' friends from volleyball camp.

"A lot of people are not getting raises right now, so you've got to find that extra money to pay on taxes for your food," said Martin.

Eddie Parish owns The Sweet Spot ice cream shop. He believes the tax hike may deter some restaurant-goers.

"Some people don't care about taxes; others are counting pennies. Some people are working harder than others," said Parrish.

The Sweet Spot is connected to Prospect Diner. The diner opened just three months ago in the town of Appomattox, and operators say the last thing they need is something to hurt their growing business.

The tax on eating out is the only levy increase for the town, which could be good news for some. Real estate and personal property taxes are staying the same.

"I guess they could be raising taxes on everything because eating out is a choice. But still, you don't want to pay more if you do go out and eat a lot, said Martin."

Parrish believes it may hurt business slightly, but not enough to notice. 

"I doubt it because there's always somebody out there that's hungry," said Parrish.

The tax increase also applies to the deli areas in grocery stores if the food is prepared.

This is the first increase on the meals tax in the town of Appomattox since 1994. It will go into effect on July 1, 2013.

Click Here to read the town Tax Code .

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