Charlottesville's Meals Tax Now 6%
CHARLOTTESVILLE, Va. (WVIR) - Taxes are going up for folks eating or staying in a hotel in Charlottesville.
In April, City Council raised the tax rate on dining out from 5% to 6%. That increase went into effect Monday, July 1.
These taxes are sources of revenue that go into the city's General Fund to help pay the entire budget, which is roughly $188 million.
"The meals tax revenue is going go from about $12 million total to about $15 million helps us balance the budget and fund those priorities this community has said are really important, and primarily that's affordable housing. That was over $10 million in the current budget. So one way to look at it is this meals tax increase helps fund those top priorities,” said city spokesperson Brian Wheeler.
Some of the budget revenue will go toward marketing assistance to help city restaurants.