RICHMOND, Va. (WRIC) — The City of Richmond has announced some relief for local business owners affected by the ongoing meals tax fiasco.
According to a Feb. 26 press release, the City has established a “penalties and interest freeze (PIF) as part of its review of the collection and application of payment for meals taxes.”
According to the release, meals tax accounts with existing overdue balances as of March 1 will be placed under immediate review. While the City reportedly intends to review all meals tax accounts, currently delinquent ones will be prioritized. Those business owners will receive notification by mail.
Some of these affected accounts are behind tens of thousands of dollars — the majority of them because they were given incorrect information by City tax auditors about collecting Richmond’s 7.5% meals tax.
Local restaurant owners such as Matthew Mullet of Richbrau Brewing and Samuel Veney of Philly Vegan have been vocal about the huge bills they have received all because of faulty information.
Accounts such as Veney’s and Mullet’s should have their reviews finalized by July 1, according to the release. If the Department of Finance cannot deliver on this timeline for any reason, affected business owners will receive direct communication from the department on when to expect a decision.
As the new tax collection system, RVA Pay, is still in a transitional period, the City noted that these reviews will continue to be manual. This process, performed by the Department of Finance, will take time to complete.
“Each case is different, and therefore, outcomes are determined case-by-case,” the release reads. “During the review, we may request access to relevant financial records, receipts, and other related documentation.”
Additionally, the City said any under-review account that incorrectly receives a delinquency notice — which Veney recently experienced, sharing his frustration about it at a City Council meeting — should contact the City’s official meals tax email, mealstax@rva.gov.
Regularly monthly payments should still be kept up-to-date. Other concerns and questions can be submitted either to that same email or through this secure form.
This penalty and interest freeze follows other commitments to resolving this issue previously made by the City. Ongoing efforts, as described in the release, include:
- Establishing and maintaining a line of communication with businesses regarding the review of the collection and application of meals tax payments
- Continuing to host a series of “business cafés,” including subject matter experts in attendance to answer questions and assist business owners in real-time
- Hosting a career fair to fill vacant positions within the Department of Finance, which will be held on Thursday, March 7, from 10 a.m. to 2 p.m. at the Bon Secours Training Center
- Transitioning from the previous payment and collection system to a modern automated system called RVA Pay
Hours for the City Hall Finance Office have also changed to allow more time for case reviews, pending items, RVA Pay work and “improving customer satisfaction,” according to the release. Beginning Feb. 28, said office will close every Wednesday at noon.
The Southside Plaza location on Hull Street, as well as the East District Initiative on North 25th Street, will keep to normal operating hours.
