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Greensboro leaders discuss implementing a prepared food tax

Greensboro Mayor Nancy Vaughan says the one percent tax could generate roughly $20 million a year for the city.

GREENSBORO, N.C. — You could soon see a new tax on your bill the next time you're at a restaurant.

Greensboro city leaders are considering a food tax.

The tax isn't only at restaurants but anywhere food is prepared.

So that sandwich you get at the deli counter, it'd be taxed.

Business owners across the city have mixed opinions.

Jeremiah Spooner is the co-owner of Trust Restaurant and Bar.


“Sunday we have pretty girls brunch, great food we have light music,” Spooner said. “Tuesday is taco Tuesdays and open mic Thursdays.”

The experience could eventually cost a bit more if the city of Greensboro goes through with a prepared food tax.

It's a discussion Greensboro Mayor Nancy Vaughan has started and hopes to see come to pass to help the city bring in more revenue.

“When we look around at what other cities in North Carolina are doing, ways they are not relying on property tax to make investments in themselves,” Vaughan said. “Certainly Charlotte, Raleigh they take advantage of it.”

Vaughan said the one percent tax could generate roughly $20 million a year for the city.

For example, you'd pay an extra 50 cents on a $50 bill when you buy prepared food.

Today’s Feature Grilled Chili Shrimp or Chicken Tacos topped w/ spanish rice & queso w/ pickled red onions

Posted by Trust Greensboro on Tuesday, June 6, 2023

“It’s so small it's not a huge hike in price,” Spooner said. “And where we can we'll definitely off set that as much as possible.”

Ray Essa is the owner of Café Pasta and Grille.

“You're looking at close to 8% now on tax just to go out to dinner,” Essa said.

He said he's unsure about adding another tax to what he's already paying the county and state.

“You have to try and find ways to stay in business and keep the quality of food up but keep the prices down,” Essa said.

Mayor Vaughan said the investment is necessary for tourism and the city's growth.

“Bryan Park is a wonderful soccer complex people come from all over the country for soccer tournaments but those fields have age on them,” Vaughan said. “When you look at what people are doing in VA and SC we're beginning not to look so good.”

Vaughan said that with a prepared food tax, a large majority of folks who go to events and buy food are coming from outside of Guilford County. She said paying the tax takes some of the burden off of property tax payers.

Essa said it could be a disservice to traveling sports teams that often dine at his restaurant.

“We have a lot of teams but most are on a budget,” Essa said. “They want the break down between the gratuity the food cost and the tax so to keep it within their budget is to lower our prices even more.”

Mayor Vaughan said it'd take at least a year of discussion with the community and legislature before any tax is added.

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