Rosen Proposes Two Year, Emergency Meals Tax Increase
Says School budget needs short-term, immediate fix
ROANOKE, VA- Roanoke Councilman Court Rosen today proposed an emergency, two-year increase in the city’s prepared meal tax of 2% as short term fiscal first aid to provide the Roanoke City Public Schools needed breathing room amid massive state cuts to public education. The measure would help fill an enormous funding deficit within our schools and also alleviate significant pressure on the city’s budget, preserving public safety and other essential city programs and services.
“As a small business owner, the last thing I like to see is increased taxes, particularly during difficult economic times,” said Rosen. “But within the next eight weeks our schools must adopt a budget for next fiscal year, and we must look at what's best for the education of kids by trying to keep class sizes lower and preserving programs that benefit our urban youth.”If enacted, a 2% increase in the “meals tax” would have the following impact on the cost of meals in the City of Roanoke:
· On a $10 meal, it would add 20 cents to the cost of the meal
· On a $25 meal, it would add 50 cents to the cost of the meal
· On a $100 meal, it would add $2 to the cost of the meal
“This is only one proposal that deserves a public, transparent and vigorous debate,” Rosen said. “It’s important that city residents also recognize that this measure, while directed to fill a funding gap within our schools, will relieve significant pressure from the city’s budget, preserving needed programs and services delivered by hardworking, qualified employees of the City of Roanoke.”
The next two fiscal years are projected to be exceptionally difficult in fulfilling needed educational, economic development and social programs. If enacted, City Council should revisit this tax increase at the end of the next fiscal year, and should the economy rebound sooner than expected, the Council should revert the meals tax back to its current level. If, as expected, the next two fiscal years are as tough as expected, the sunset clause written into the proposed ordinance would guarantee the tax would end following the next two fiscal years.
“Additionally, this proposal stresses that any tax increase should sunset and end on June 30, 2012 and should be enacted only as a temporary measure and not as a ‘new’ source of revenue that either our schools or the city become reliant on,” said Rosen. “It would be a short-term, emergency tax to fill an emergency need that has been forced upon us at the state level.”
Rosen stressed that this proposal should be debated in the upcoming budget sessions that City Council will soon begin, and that he looks forward to other discussions, proposals and solutions by others to what soon could be devastating funding cuts leveled by the Commonwealth at our public schools.
9 comments:
Court, thank you for supporting the Roanoke Public Schools.
As a former Roanoke teacher who worked in northern Virginia and overseas, I am well aware of the resources needed to close the gap with other regions and countries.
Beyond direct benefits to the region, it is a matter of national security.
Before this economic crisis, we already had an identified gap of $10 million to get K-12 programs on par with northern Virginia.
My former colleagues are extremely professional, diligent, and hard working. I can't say enough about the 12 to 14 hour days they invest with Roanoke youth.
Thank you for stepping up to the plate when no one else will and making a modest but gutsy proposal.
A very well worded press release, in that it neglects to mention the current meals tax level or what the TOTAL taxes would be if enacted. If I'm not mistaken, that would be a total of 12% tax on a meal.
I'll make the same assumption that you made of your constituents: you are unable to do math. So, here are three examples similar to what you provided:
On a $10 meal, tax would add $1.20 cents to the cost of the meal
On a $25 meal, tax would add $3.00 cents to the cost of the meal
On a $100 meal, tax would add $12.00 to the cost of the meal
I know it doesn't sound as good as the way you worded it, but your wording makes it easier to swallow. Right?
Additionally, it looks like your numbers take no consideration for decreasing returns. Jack up the tax high enough, and there will be fewer people eating out and revenues will actually decrease. Don't forget about adding a tip to that meal! I'd be brown-bagging it more if this tax increase were to happen.
Smitty, the City tax rate on meals is 5%. I am proposing to increase it to 7%, temporarily. It would add 20 cents onto the price of a ten dollar meal.
I can't help what the exisiting level of tax on a meal is at this point, but I am referring to what would be added to a meal from existing levels. That was pretty clear in the news release.
A tax that would last only 2 years? That's rich. I don't know of any tax that only lasts two years. Once they get used to it, you actually think they would take it back? You should realize that giving people more of their own money to spend is the only way to help the economy. Our leaders should be cutting our taxes, not raising them. But, unfortunately, that problem is flowing from the top, and will cost our future generations their money and their freedom.
Anonymous:
"that problem is flowing from the top, and will cost our future generations their money and their freedom."
I agree, and that's the problem: the state is forcing major reductions on localities, which is why we're in such a jam. Well said.
Mr. Rosen,
This 2% meals tax you are proposing leaves me with a question. Can you guarantee the citizens of the City of Roanoke that this 2% tax will go totally to the city schools along with the money that is already allocated for the schools or will the money already allocated be adjusted. See that is what Virginia did with the lottery money, they used the schools to get the lottery passed saying that the money would go toward our public schools and once it was passed they adjusted what was already going to schools with lottery money, the lottery money is not an addition. I do not live in the City of Roanoke although I do work downtown coming here 5 days a week and eat lunch out often, I also return to Roanoke to eat dinner and sometimes make a trip to IHOP on Sunday morning for a nice breakfast, I do not mind paying an extra 2% on my meal knowing that it will be an addition to what is already being given to the City Schools. If this is not the case, I will then make an effort to drive to a restaurant in Roanoke Co. or Salem to have breakfast, lunch and dinner.
Its already a rediculous 10% now...12% is outragious..
In addition Ive just heard that some classes have as few as 15 students....So I find no problem with increasing class sizes.
With Stadiums that were built with school funds..to the rediclous disfunctional bus stop built in front of PH..we have mis spent money for years.
And we all know this tax once applied will never be removed..
And believe me visitors already notice the outragious meals and Hotel taxes...When tax is that high.It can add hundreds of dollars to a trip..Therefore visitors may well go elsewhere to spend their money..Read my lips Court..No New Taxes!
Anonymous February 18, 2010 9:47 AM
and Bluesguy:
Sorry I'm just now responding. Yes, the resolution that was passed scheduling the public hearing was for revenue to be dedicated to the schools.
Bluesguy, George H.W. Bush said the same thing, then guess what happened...! The reality is that we are not the highest meals or lodging taxes in the state. This would be temporary. It will legally sunset on June 30, 2012. It is up to taxpayers to hold folks accountable.
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