NCRLA Opposes New Prepared Food Tax in Greensboro

The North Carolina Restaurant and Lodging Association (NCRLA) sent a letter to Greensboro Mayor Nancy Vaughn on Monday June 26, letting her know that association opposes the implementation of a new prepared food tax. Coming out of the pandemic, restaurants are just now beginning their comeback. They continue to struggle with increased labor and food costs and many have already been forced to increase menu prices. A new meals/food tax addition would be another increase in pricing on the consumer, making going to restaurants less and less affordable which hurts both consumers and foodservice establishments at a time when they can least afford it. Meals/food taxes are generally considered regressive and unfairly target low-income residents who depend on out of home prepared meals to feed themselves and their families. Unlike occupancy taxes, which are paid primarily by visitors to the area, meals/food taxes are just the opposite – most of the revenue comes from local citizens who either eat out or pick up a prepared dish at the deli counter. For decades, the NCRLA has stood in firm opposition to meals and food taxes and there has not been a new such tax authorized in our state in over 30 years.