09-04-2025
Roanoke restaurants speak out on city council's proposed meals tax increase
ROANOKE, Va. (WFXR) – Roanoke City Council is still coming up with ideas to close a multi-million-dollar gap to meet the city's budget for the year. One of the ideas proposed by financial advisors was a meals tax increase.
City leaders have floated a 1.5 percent increase on the local meals tax, which would put it at seven percent total in the city of Roanoke.
It estimates that it would generate about $6 million in revenue, but local restaurants would rather see the rate left alone.
RELATED STORY | Roanoke restaurants share concerns over proposed meals tax increase
'We already had to deal with COVID not too long ago,' Josh Patsel, the kitchen manager at Awful Arthur's Seafood Company, said. 'Another blow like this, even if it sounds like it's small, but in the long-term, we're probably looking at probably doing a little bit of damage around here.'
Experienced restaurant owners have lived through meals tax increases in the past, but some are still recovering from the COVID-19 pandemic five years later.
They say now would not be a good time to take another hit.
'Some people may look at it as only one percent or 1.5 percent increase,' Matt Bullington, the owner of Texas Tavern, said. 'The reality is that is a percent or percent-and-a-half that you really can't raise your own prices when your costs go up, which they do, and they have been.'
Bullington said the restaurant industry already collects the same sales tax as other businesses, and meals taxes are added on top of that.
RELATED STORY | Budget recommendations made to Roanoke City Council
In the end, restaurants' meals are taxed twice as much as other goods and services. He said since the city usually increases the meals tax to make up budget shortfalls, maybe this time it can look somewhere else.
'I have nothing against people that cut hair or change oil, but if you get your haircut, there's no tax that gets paid on it, but if you come buy a hot dog, there is,' Bullington said. 'Why is that any different?'
WFXR reached out to the city for a response, but has not received one at this time.
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