RICHMOND, Va. -- Proposed changes to state law to address city tax collection issues like the ones that have been plaguing Richmond restaurant owners received a mixed reaction from Virginia legislators Tuesday.
Two-thirds of the Senate Finance and Appropriations Committee balked at Senate Bill 294, an amended version of which would allow Richmond and other cities to apply meals tax payments to the tax returns they accompany, rather than to delinquent accounts first as existing law requires.
The bill also would allow city finance directors to waive penalties and interest if it’s determined to be in the locality’s best interest.
In Richmond, the accumulation of such fees without notice to the taxpayer has resulted in multiple restaurants receiving tax bills for tens or even hundreds of thousands of dollars owed.
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