GREENSBORO, N.C. — The North Carolina Restaurant and Lodging Association (NCRLA) said they sent a letter to Greensboro Mayor Nancy Vaughn Monday, letting her know that association opposes the implementation of a new prepared food tax.
Restaurants are just now beginning their comeback after the 2020 Coronavirus pandemic. However, they continue to struggle with increased labor and food costs, and many have already been forced to increase menu prices.
The experience could eventually cost a bit more if the city of Greensboro goes through with a prepared food tax.
It's a discussion Mayor Vaughan has started and hopes to see come to pass to help the city bring in more revenue. She believes the one percent tax could generate roughly $20 million a year for the city.
The NCRLA believes new meals/food tax addition would be another increase in pricing on the consumer, making going to restaurants less and less affordable which hurts both consumers and foodservice establishments at a time when they can least afford it.
Meals/food taxes are generally considered regressive and unfairly target low-income residents who depend on out of home prepared meals to feed themselves and their families, according to the NCRLA.
Unlike occupancy taxes, which are paid primarily by visitors to the area, meals/food taxes are just the opposite – most of the revenue comes from local citizens who either eat out or pick up a prepared dish at the deli counter.
Mayor Vaughan said the investment is necessary for tourism and the city's growth.
The NCRLA has stood in firm opposition to meals and food taxes for decades and there has not been a new such tax authorized in our state in over 30 years.
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