City food, beverage tax takes effect March 1

Diners at Richmond restaurants will begin seeing a 1% food and beverage tax on their bills March 1.

Denise Retz, the city’s parks superintendent, updated parks board members about the tax during a Jan. 8 meeting. In December, Richmond Common Council enacted the tax, which was made possible by legislation passed during last year’s state General Assembly session.

The tax revenue, which comes from transactions involving prepared foods and drinks within city limits, is designated solely for parks projects and the Whitewater Gorge activation. Retz said the department should begin receiving tax funds back from the state during May.

“The Department of Revenue has a long list of things that the municipalities are responsible for after the food and beverage is approved, so we’ve been following that guideline along with the finance team here in the city that will be working with us on that,” Retz said.

The city sent letters to 337 food establishments detailing what the establishments must do. The state Department of Revenue provided the template for the letter, Retz said. Depending upon whether they collect more or less than $1,000 in taxes each month, establishments have 20 or 30 days after month’s end to remit the tax money to the state, which then passes it back to the city.

“We’d love to start projects immediately,” Retz said. “I want the community to know that’s something very near and dear to our hearts. We want to get these projects off the ground, but obviously it’s going to take some time to gather some of these things together.”

Retz said she also has a meeting scheduled to discuss bond options that would provide money up front for projects, then use the food and beverage tax revenue to pay off bond debt.

Test trailhead

The parks department has opened the renovated Test Road trailhead that features a shelter with picnic tables, river overlook and river access.

A custom fence for the overlook has not been installed, and contractor RL Turner Corporation has punch list items remaining to complete, Retz said.

“We wanted to open that to the community and let them get out there and experience everything that this trail has to offer, especially in this warm weather,” she said.

Other items

• Parks employees have refurbished 16 picnic tables and planted 12,000 pansy seeds in small containers.
• On mild weather days, golfers have played Highland Lake Golf Course. “We’re happy to have play on the course,” Retz said.
• The board elected Mike Foley to continue as its president and elected Cathryn Dickman as vice president.