Accomack Supervisors postpone meals tax action

The Accomack County Board of Supervisors heard a presentation by County Administrator Mike Mason during their July meeting that referred to an anticipated $241,000 budget shortage due to changes in the Virginia Overtime Wages Act that would prevent county employees from receiving comp time in lieu of overtime wages. It was decided to move forward with a public hearing on implementing a 5% meals tax on 68 businesses identified that are not located in any towns that implement the tax to cover the additional expenses mandated by the State.

The public hearing was scheduled for Wednesday night’s meeting but changes in the VOWA by the General Assembly during the recent special session rendered that issue moot for the time being.

Mason advised the Board that they could use a meals tax to partially fund the requests by Greenbackville and the Department of Public Safety for 12 full time additional employees.

Mason said, however that if the Board wished to go in that direction, another public hearing would be required.

The Board voted unanimously to postpone the implementation of the meals tax until a second public hearing could be held.  It is expected that the Board will take up that issue in its September meeting.

Supervisor Donald Hart demonstrated the issues involving a meals tax in the July meeting by telling the Board that  a meals tax is not charged at Subway in Onley because it is located in the county.  But deli food prepared in the same store is charged a 5% meals tax which is paid to the Town of Onley.  The town line runs through the front door at the left entrance to the store.

Businesses like Food Lion near Onley and in Oak Hall do not collect meals tax revenue.

County Finance Director Margaret Lindsay estimates that at lease $300,000 annually would be raised by implementing the meals tax throughout the County.