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150 <br /> <br />APPOINTMENTS: <br />JAUNT BOARD <br /> <br />PUBLIC HEARING: <br />PROPOSED MEALS <br />AND TRANSIENT <br />LODGING TAXES <br /> <br />requests from Workshop V and the Blue Ridge Federation for the Blind <br />until the next Council meeting, since they are of the same nature as <br />United Way's req.uest. <br /> <br /> On motinn by Mrs. Gleason, Council reappointed Gary O'Connell, <br /> <br />Jane Saunier, Gerry Hood and Helen Poore to the JAUNT B6ard. <br /> <br /> Cole Hendrix, City Manager, gave a brief overview of the two matters. <br /> <br />Mr. Hendrix stated that the meals tax is the only significant source of <br />revenue to the City that has not been utilized. <br /> <br /> Roger Wiley, C~ty Attorney, explained that the ordinance as proposed <br />imposes a straight 3% on all meals served in restaurants or by caterers. <br />He stated that the tax would not include expenditures for alcoholic <br />beverages. He stated that the tax would be coll~e~cted by the seller in <br />the same way general sales tax is collected and would be paid to the <br />Commissioner of Revenue on a monthly basis, then the receipts would be <br />transferred to the City Treasurer's office. He also stated that the tax <br />would not be imposed on the portion of the bill that reflects tips or <br />service charges. Mr. Wiley continued, saying that there are nine categories <br />of meals which are exempted by the state sales tax. <br /> <br /> Mayor Buck suggested imposing the tax, and depending upon the <br /> <br /> decision of the General Assembly, rescinding the tax if necessary. <br /> Mayor Buck opened the'public hearing. <br /> <br /> Tom Jacubowski, owner of the Roy Rogers franchise and President of <br /> <br /> the Charlottesville-Albemarle Restaurant Association, read a list of <br /> recent restaurant closings in the area. He stated that restaurant owners <br /> are "drowning in a sea of ink" and that they have seen no profit this <br /> year. Mr. Jacubowski stated that imposing a meals tax would present a <br /> hardship to senior citizens and students since eating out for them is <br /> quite often not a luxury, but a necessity. He stated the imposition of <br /> the meals tax would effect waiters and waitressed whose tips will dwindle. <br /> He suggested letting local businesses fund the Vinegar Hill project, not <br /> the taxpayers. <br /> <br /> Dave Flynn, proprietor of LaHacienda, presented Council with <br /> <br /> petititions with 5,600 signatures of citizens against the meals tax. He <br /> stated that it is obvious City Council does not realize the small margin <br /> of profit restaurants operate on. He stated that Council's contention <br /> that the tax would have the largest effect on tourists is incorrect. He <br /> continued, saying that restaurant owners should not be singled out to <br /> help support a project that will be future competition. He stated that <br /> a referendum would be advisable on the matter. <br /> <br /> Phillip Ward of Fudley's Restaurant, located at 9 Elliewood Avenue, <br /> spoke in opposition of the 3% meals tax. He stated that building the <br /> Vinegar Hill project would cause downtown congestion. He also pointed <br /> out the effects of the meals tax which would be harmful to waiters, waitresses <br /> and students. Mr. Fudley asked if a feasibility study had been done by <br /> the City regarding the Vinegar Hill project. <br /> <br /> Mayor Buck responded, stating that such a study had been done by the <br /> City and by outside firms. <br /> <br /> John Krafac stated that'he is not against the conference center, but <br /> that he is against financing the proposal by imposing a meals tax. He <br /> <br /> <br />