RICHMOND, Va. (WRIC) — The Richmond City Council has issued a joint statement following several emotional testimonies made last week by restaurant owners impacted by the meals tax fiasco.
During a scheduled council meeting on Monday, Feb. 12, five of the local restaurant owners who have been hit with bills totaling tens of thousands of dollars after receiving incorrect information from City tax auditors took to the council’s podium to share their stories.
“It’s only three minutes for us at this podium for y’all to listen,” said co-owner of Philly Vegan, Samuel Veney, who was billed nearly $40,000 in unpaid taxes and penalties. “For me? It’s been two years. For some of these people, it’s been three, four, five, six, seven [years] — and it shouldn’t be this way.”
Richmond requires businesses like Veney’s to collect a 7.5% meals tax — but Veney, among several others, was told years ago by a City official that he did not have to charge this tax. Now, he and many others have been saddled with extensive debt because of the City’s mistakes.
In addition to this incorrect information being provided to restaurant owners, the system in place for repayment is outdated, flawed and complicated to navigate.
“The reality is we did not invest in maintenance of our financial systems, folks,” Councilwoman Ann-Frances Lambert said during the meeting. “Period.”
In this new statement released on Thursday, Feb. 15, the council stated its intentions to work towards solutions for this broken system.
“Richmond City Council believes that Richmond deserves an effective, efficient, and responsive finance system,” said the council in its statement. “Council is committed to identifying and enacting substantive laws and policies that create tangible solutions to make this a reality.”
During the meeting, council members voted unanimously on an ordinance that clarifies the application of tax payments. These changes to City code would require tax collectors to apply payments to currently-due liabilities instead of any delinquent amount.
The council listed the following as further “clear, actionable solutions” it wishes to deliver on:
- “Create plans for all accounts to come into compliance, with detailed policies for an appeals process, forgiveness, refunds and payment plans.”
- “Work directly with affected communities to create solutions that work for them.”
- “Create online visual/text materials informing businesses on best way to pay taxes.”
- “Providing ongoing updates to Council and the public.”
“When problems like these arise, Richmond City Council is here to repair the harm through its oversight role,” the council said. “We look forward to working directly with impacted restaurant owners and the City Administration to find collaborative solutions.”
Chief Administrative Officer Lincoln Saunders recently met with dozens of restaurant owners on Jan. 31, telling them “there were things the City could have done better.”
“Council recognizes that the City Administration is taking initial steps to remedy these harms, and this will take time,” the council said. “This includes a concrete list of measures establishing better policies, significantly improving processes, creating new laws, and investing in new systems.”
In this statement, Richmond City Council asked City Administration to come before the council during its upcoming scheduled meeting on Monday, March 4, to discuss solutions. It is not known at this time if said officials will attend.
