September 25, 2006
Subject: Requiring Voter Approval to Increase the Meal TaxDear Mayor and Members of City Council:
VBTA appreciates the support of council members who support the requirement that future increases in the meal tax would require voter approval by referendum to become law.
VBTA is perplexed why a majority of city council members, including the Mayor and Vice Mayor, would want to say having the second highest meal tax in the country only behind Norfolk was not high enough.
The only reason not to support a very reasonable recommendation of the Task Force and a provision (referendum requirement for additional increases) supported by a significant minority on City Council is if the Mayor and/or Vice Mayor were in favor of having the highest meal tax in the nation.
A city council majority by holding to the Mayor’s de facto position that Beach families are under taxed, risks having the General Assembly unilaterally modify the City’s Charter to impose such a restriction. Remember, more than 80 percent of the meal tax is paid by local residents. If you buy shrimp at the local grocery and have the store steam them, a family pays a the 10.5 percent meal tax, even though the food is sold at the raw price and steamed at no additional charge.
The only reason not to recommend subjecting future meal tax increases to referendum is that a majority of City Council anticipates the need to have the highest meal tax in the country, and does not believe it can make a voter-acceptable business case for a future increase. The only conclusion one can draw is that a City Council majority is not interested in truly being accountable to the public.
VBTA and the public at-large wants to believe there is at least one and perhaps two more council members who will reconsider and support what is a revenue neutral condition on future meal tax increases. Please form a City Council majority so that the voice of reason prevails in favor of a responsible partnership for future increases in the meal tax through the ballot box.
Sincerely,
John D. Moss, VBTA Chairman
Copies to:
VBTA Board members
Alexandria Taxpayer United
Americans for Prosperity
Americans for Tax Reform
Arlington Taxpayer Alliance
Cato Institute
Council of Civic Organizations
Chamber of Commerce
Competitive Enterprise Institute
Citizen Action Coalition
Fairfax Taxpayer Alliance
Freedom Works
Heritage Foundation
Hotel-Motel Association
National Taxpayer Union
State Policy Network
The Virginian Pilot
Virginia Public Policy Institute
Virginia Beach delegation to the General Assembly
Virginia Beach School Board
Virginia Club for Growth
Virginia News Source
Virginia Beach Restaurant Association
VBTA state-wide distribution list