SOUTHPORT, N.C. (WECT) – The North Carolina Restaurant & Lodging Association (NCRLA) has released a statement in response to Southport’s recently passed food tax resolution.
In the statement, Lynn Minges, President & CEO of the NCRLA, stated that they oppose the resolution asking the North Carolina General Assembly to allow the Southport Board of Alderman to apply a 1% prepared food and beverage tax on meals.
The NCRLA outlined several misconceptions about the resolution. The NCRLA says the tax would not only apply to restaurant meals but also to prepared foods from grocery stores.
“We have already seen food prices soar in the last few years due to increased inflation. An additional tax now on food and beverages at restaurants and grocery stores makes this tax proposal even more egregious,” Minges stated.
Minges says this year-round tax would affect locals more than it would tourists.
“Unlike the hotel occupancy tax, which is paid by tourists, the bulk of prepared food tax collections are paid by local citizens. . .When your tourists leave for the summer season, the tax will not go with them,” Minges stated.
The statement also highlights the burdens the NCRLA feels the new tax would place on local citizens and businesses.
“Targeted taxation on food is a highly regressive tax. This tax would disproportionately affect lower-income residents who rely on affordable dining options. Many people are not able to eat all their meals at home. Many rely on restaurants to meet their needs, on their way to work or picking up their kids from school,” Minges stated.
According to WECT’s previous reporting, the resolution still has to be approved by the legislature, and then would be a referendum for residents to vote on in November.
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