ROANOKE, Va. – Roanoke City is proposing to increase its meals tax by 1.5%, which could increase the cost of eating out.
“It’s unfortunate that if it does increase, that makes it less likely for us to want to come out and spend money because, you know, three kids, a house, and everything, the way the economy is,” said Taylor Cranmer from Craig County.
The mother of three says her family comes to Roanoke City for special occasions, but if the meals tax is raised, that will make it less likely for them to want to go out to eat.
Roanoke City is considering increasing its meals tax from 5.5% to about 7% as part of its proposed budget. The additional money would bring in about $6 million that would go toward things like overtime wages, Washington Park Pool, Eureka Recreation Center, and a backlog of HVAC and mechanical projects.
Surrounding areas also have meals taxes. In Salem and Botetourt, the meals tax is currently 6%. In Roanoke County, the meals tax is 4%.
Restaurant staff say this will affect their businesses.
Macado’s Administrative Director Tapiwa Kaseke said about 1,000 people come in each week, but fewer people will come in if the meals tax is raised.
He said people will not only have to worry about the increases in food but also about parking.
“By the time you’re done [with a] sandwich and a drink, you’re already at about $20-$25, including the parking, so now if you add an additional meals tax to it, that’s an added cost that the consumer has to pay to visit the establishment. So, in essence, it’s going to impact us pretty big,” said Kaseke.
Kaseke said the city could help restaurants by helping customers with parking or even having police in the area to help with safety concerns.
Meanwhile, Jason Martin, who owns Sidecar, Martin’s and Jaybird Tavern, is opposed to the meals tax in Roanoke City.
He says they’ll have to increase prices, driving customers away over time.
Martin also said there could be layoffs.
“This affects a lot of people, so you know if our business drops and we have to make hard decisions to cut labor or do whatever, it has a real lasting effect on Roanoke and the people of Roanoke,” said Martin.
10 News reached out to the owner of Texas Tavern.
He said during a phone call that the meals tax increase is too much, and he said the city should look for other ways to make up for costs instead of coming to restaurants.
He also said he feels like restaurants are being targeted, and this happens every time.
10 News reached out to Roanoke City asking if anyone was available for an interview or statement, but did not hear back.