RICHMOND, Va. -- On Monday, Richmond's Chief Administration Officer reassured council members that steps were being taken - not only to review every delinquent meals tax account but to freeze all penalties and interest for restaurant owners while an audit takes place.
Lincoln Saunders told council members that the finance department has already resolved several accounts that were in dispute and said the department hopes to review and settle all accounts by July 1.
Despite the freeze, businesses must continue to collect and pay their monthly meals tax payments during the review process.
Saunders added that if any accounts are not reviewed by July 1, the individual business owners will be notified.
Kevin Grubbs, the co-owner of Latitude Seafood Company- was one of the first restaurant owners to sound the alarm when he was charged $68,000 in late fees for missing one payment during the pandemic - even though the mayor had announced an amnesty program for restaurant owners.
Grubbs says he's relieved to see progress, but dismayed it took so many owners speaking out for it to happen.
"I use a certified public accountant to pay the bills for a reason that way there's another person involved, it's not just me,” Grubbs said. “He does it for many, many restaurants, I'm not the only one so I use a professional and the fact that it got taken to this extent, while using a professional, speaks volumes about the system itself."
Saunders also told council members that the finance department has re-prioritized the city's rollout of RVA pay - its online payment program - to include the meals tax as the next priority.
Saunders says the meals tax is the city's most complicated tax since it is monthly and self-reported.
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