Subject:
Title
Public Hearing to Change Meals Tax Collection for Town-Sponsored Special Events
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Set public hearing: Aug. 26, 2024
EXPLANATION AND SUMMARY:
Many special events are hosted by local charitable organizations, such as ViVa! Vienna! and Oktoberfest and are sponsored by the Town. These events feature food trucks, which under the Town Code, Chapter 6, Finance and Taxation, Article 4, Meals Tax, meet the definition to charge, report and remit meals taxes to the Town based on a percentage of gross receipts.
It is difficult for the Town to enforce collection and payment of a percent of receipts after the event for food trucks that aren't already meals tax payors, that is, don't have a brick-and-mortar location in Town. Instead of a collection process after the event that frustrates the outside organizations and Town staff, we propose a minor amendment to the code to allow food trucks at Town-sponsored special events only to pay a flat tax up front. This has been discussed with the Parks and Recreation Department and the outside organizers, and all agree this method would be a welcome change.
This public hearing is to allow the public to provide comment and feedback to Council.
Any tax change requires a two-thirds supermajority vote to pass.
Departmental Recommendation: Recommend a public hearing
Finance Recommendation: Recommend a public hearing
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town may conduct a public hearing to obtain public comment on the proposed special events meals tax collection process in the discretion of the Town Counsel.
Town Manager's Recommendation: I recommend the Town Council adopt the change to Chapter 6, Finance and Taxation, Article 4, Meals Tax, Section 6-35, Exemption; limits on application to add a provision to charge a flat meals tax in lieu of a percentage meals tax for Town-sponsored special events, as presented.
Cost and Financing: $0
Account Number: N/A
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. N/A
Decision Needed by This date: Nov. 18, 2024
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to close the public hearing"
And
“I move to approve the proposed change to Chapter 6, Finance and Taxation, Article 4, Meals Tax, Section 6-35, Exemption; limits on application to add a provision to charge a flat meals tax in lieu of a percentage meals tax for Town-sponsored special events as presented above”
And
“I further move to direct the Town Clerk to advertise a Notice of Intent to Adopt for December 9, 2024.“
Or
Other action deemed necessary by Council.