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HomeMy WebLinkAbout99-14 Resolution 99-14 Requesting Deletion of Meals Tax Restrictions From Food Tax Relief Bill (HB 1601) WHEREAS, Governor Jim Gilmore’s proposal to reduce the state sales tax on food did not include any change to the local meals tax; and, WHEREAS , HB 1601 was amended to prohibit localities from levying their meals tax on items that meet the definition of “food for home consumption” as defined in the Food Stamp Act; and, WHEREAS , the meals tax restriction in HB 1601 will reduce the meals tax revenue collected by the Town of Pulaski by 4½ per cent; and, WHEREAS , the budget passed by the 1999 General Assembly includes additional money for education but includes both a maintenance of effort requirement and a local match requirement, which means that many localities will have to spend additional local funds to benefit from the new state funding; and, WHEREAS , the 1999 General Assembly approved funds for a six-percent teacher salary increase, provided that a locality can meet its local match requirement; and, WHEREAS , local governments are the providers of essential services in their communities, and reducing existing revenues adversely affects their ability to maintain services; and, WHEREAS , local governments routinely employ a variety of measures to limit the tax burden in their communities. NOW THEREFORE BE IT RESOLVED , that the Town of Pulaski, Virginia requests that Governor Jim Gilmore amend HB 1601 to strike all references to the local meals tax. This resolution is effective upon adoption and is adopted by recorded vote of the Town th Council of the Town of Pulaski, Virginia, on this 16 day of March, 1999 as follows: James M. Neblett - ___ W. Edgar Hale - ___ Lane R. Penn - ___ Joseph L. Weddle - ___ Jeffrey S. Worrell - ___ Pauline G. Mitchell - ___ Bettye H. Steger - ___ Charles W. Stewart, Jr. - ___ BY: _______________________________ John A. Johnston, Mayor ATTEST: _______________________________ Patricia Pendergrast, Clerk of Council