SCOTTSVILLE — Scottsville’s Town Council rejected a proposed meals tax increase Tuesday night, stalemating at a vote of 3 to 3.
The proposal, which would have raised the tax from 4 percent to 5 percent, required a super majority vote of four to pass.
“It sort of sends a bad signal. We’re trying to get new restaurants in town, and here we are raising the meals tax,” Councilor Robert O’Halloran said in a discussion before the vote.
Scottsville finished fiscal 2009 a little more than $47,000 in debt. Clark Draper, town administrator, projected that the increase in the meals tax would have brought in $20,000 for the town in the first year. Scottsville raised the cigarette tax to 10 cents per pack in mid-June, a move projected to bring in $11,000 in its first year.
Draper factored the additional $20,000 from a 5 percent meals tax into the proposed $630,800 budget.
The town must operate under a balanced budget, per state mandate. As of press time, the council had not approved the budget or settled on how to account for the $20,000 the increased meals tax was projected to bring in.
“I don’t necessarily think the meals tax is the silver bullet. … The other alternative is property tax,” John Snoddy, vice mayor, said in the discussion leading up to the vote.
Snoddy suggested the town hold a special meeting to discuss alternative ways to bring in revenue, but a date was not set.
Because fiscal 2010 starts today, Scottsville was required to approve its budget by midnight. Look for an update today at DailyProgress.com and in Thursday’s Daily Progress.
The council unanimously passed a sediment and erosion control measure to keep up with state requirements. An increase in the vehicle licensing tax, from $25 to $30, also passed unanimously.
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