RICHMOND, Va. -- More business owners are coming forward to express concerns to Richmond City councilmembers regarding the city's handling of recent meals tax issues.
This comes as CBS 6 has reported that many businesses now owe tens of thousands of dollars in unexpected penalties and late fees because they say the city never clearly communicated with them.
Nearly half a dozen business owners attended Councilwoman Robertson's monthly district meeting where the meals tax was discussed by the city administration.
Those business owners expressed frustration and asked how the meals tax controversy could happen to so many businesses for so long.
They stated they believe the city needs to take accountability for what they say felt like a sneaky and major oversight.
Richmond Deputy Administrative Director Sabrina Joy-Hogg spoke on the issue to the room of 6th district residents.
Joy-Hogg said the city became aware last year that some businesses were not notified in 2019 that the city changed the processes to comply with the city code on how meal tax accounts payments were collected.
She said the city's finance department began taking any new meals tax payments and applying them to past delinquent balances.
However, businesses thought their payments were going to the current amount due, which then began a snowball of penalties and interest.
Joy-Hogg told business owners the city is currently reviewing all delinquent tax accounts since the change was made to determine how many people are impacted and ensure all parties have been contacted.
Richmond City Council is also putting forth legislation that would amend the city code to allow the city to separate delinquent accounts and current accounts.
“We should be able to communicate all of this. If we are going to make a change like this we should put it on our website and get creative and it should be something everyone is aware of as we are researching all of this this is coming to light," Joy-Hogg said. “We’re at a new day for the city and we’re looking at how we can give grace where we can give grace," she said.
Joy-Hogg said the city's addition of RVA Pay which manages auto-pay may be able to help this situation.
The city auditor also shared they plan to audit meals tax again once RVA Pay is implemented.
Councilwoman Robertson says she will hold a specific meeting on meals tax with the Chief Administrative Officer next Wednesday, Jan. 31 at 5:30 p.m. at the Richmond Times Dispatch.
She said this is another opportunity for business owners to express concerns and ask questions of the city.
Depend on CBS 6 News and WTVR.com for in-depth coverage of this important local story. Anyone with more information can email newstips@wtvr.com to send a tip.
