BRUNSWICK COUNTY — A meal tax bill could mean more funds for beach nourishment projects in Brunswick County.
During the first week of the new legislative session, Representative Frank Iller filed legislation that did not move out of the House last session.
Related: Saving Brunswick County beaches might cost when you go out to eat
The bill, House Bill 17, would authorize Brunswick County’s 19 municipalities to levy a food and beverage tax at up to one-half percent of the sales price — 10 cents for a $20 tab.
Bipartisan sponsors
House Bill 398, proposed in 2017, called for the creation of the same tax. Both Rep. Iler, Republican, and Democratic Representative Deb Butler signed on to sponsor both versions of the bill.
At the time, the North Carolina Restaurant and Lodging Association spoke out against the bill, saying it would unfairly impact both locals and local, family-owned restaurants.
The 2017 bill did not make it far. It was withdrawn from the House of Representatives two months after Iler introduced it.
Iler’s new bill proposes the same thing: allow local governments in Brunswick County to create a new tax, in addition to local and sales tax. The new tax could only be levied if it’s approved through a referendum.
Funds collected through this tax could only be used to cover administrative collection costs and for beach nourishment projects and to construct and improve public infrastructure.
In a release Monday, Iler said the tax doesn’t mean a higher grocery bill. “This in no way impacts one’s normal groceries,” Iler said.
The tax would apply to “prepared foods,” as defined by the General Assembly to mean hot plates. So, anything a restaurant would serve. Some exceptions would apply, including repetitive meals in a lodging scenario, vending machines, retailers subject to local occupancy tax if food charge is included in rental lodging price, military installations, and markets and grocers.
Cold cuts of meats and cheeses and other prepared meals at markets would, however, be subject to the tax.
According to Iler’s release, meal taxes in South Carolina can bring total tax rate up to 13 cents. Brunswick County’s proposed new tax, Iler said, would result in a maximum of seven cents on the dollar for the total meal and sales tax.
The tax would target tourists, according to Iler, and would not apply to unincorporated areas.
The bill passed its first reading in the House of Representatives Monday.
Send tips and comments to Johanna Ferebee at johanna@localvoicemedia.com
