Richmond, Va. (Newsradiowrva.com) - On Wednesday, more than 30 Richmond restaurant owners affected by the meals tax issue attended a meeting hosted by the Virginia Restaurant Association (VRA) with the aim of communicating their goal of getting their money back
Restaurant owners have been seeking answers and solutions after being billed thousands of dollars after incorrectly being told by the city not to collect a 7.5% meals tax.
According to VRA director Mike Byrne, the city has improperly collected millions of dollars in penalties and interest after businesses were not properly notified of the tax issue.
Byrne said businesses were “at the mercy of a flawed and outdated finance department and tax system,” which resulted in major accounting errors.
“We’re talking about money, penalty, interest, transparency, communication, notice, ” Byrne said. “We want that penalty and interest back.”
Chief Administrative Officer Lincoln Saunders, who has been tasked with handling the meals tax issue, earlier this month presented a multi-layered proposal tax revenue collection. The proposals included:
• Making electronic payments (RVA Pay) more accessible and removing the convenience fee
• Reducing the late payment penalty
• Extending the repayment plan period from 60 months to 72 months
• Lowering the minimum down payment thresholds
• Implementing “Business Cafes” to increase communication
• Preventing compounding late payments
