Taxes were a hot topic at the December Madison City Council meeting when it passed two tax ordinances and discussed the collection of taxes on overdue meals.
Reviewing the financial statements for previous months, board members noted that Miranda Restaurant had not paid meal taxes for two consecutive months, despite a written demand for payment.
City attorney Maynard Sipe suggested an audit and collection efforts if the restaurant does not meet the deadline set in Sipe’s letter, which council members agreed to.
The board also approved membership in the Northern Virginia Cigarette Tax Board. Joining the board of directors will allow the city to impose a tax on the sale of cigarettes, effective January 1, 2022.
The 40-cent-per-packet tax will reflect what the Madison County Board of Supervisors approved in November. Sipe assured the board that there is nothing wrong with joining the NVCTB and estimates that tax revenues will be around $ 2,000 per year.
The ordinances to join the board of directors and impose the tax were both passed unanimously.
Sipe also reconsidered the short-term occupancy / temporary accommodation tax last discussed in March 2020. The issue was no longer a priority during the pandemic, but the council unanimously passed an ordinance to establish immediately a register of short-term rentals and an order to impose a 5% tax. on these rentals from January 1, 2022. The ordinance targets the rental sector of owner-operators (AirBNB, VRBO, etc.)., and council members said they hoped to identify relevant properties within the city limits.
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