>>Roanoke Considers 1.5% Increase to Meals Tax, Some Business Owners Not Happy
(Roanoke, VA) -- Some business owners are not pleased as Roanoke is considering a 1.5% increase in its meals tax to generate additional revenue amid a tight budget season. Thomas Cage reports.Preview: Voicer Script:
The proposed increase, which would bring the meals tax to 7%, is part of the city's plan to avoid changing real estate or personal property tax rates. However, some restaurant owners are concerned about the impact on their businesses, while others fear it could disproportionately affect lower-income families. The Cardinal News reports the proposed budget for fiscal year 2026 includes $6 million dollars in additional revenue from the tax increase, with funds allocated for employee compensation and deferred capital maintenance. Despite concerns about the regressive nature of consumption taxes, city officials believe the meals tax increase is a politically easier option compared to raising real estate taxes.