Monday, October 11, 2010

Roanoke City meals tax revenue continues decline

A conservative estimate has turned out to be the prudent option taken by Roanoke City director of Finance, Ann Shawver. In April Shawver anticipated a future decline in meals tax revenue because “that is one of the taxes that is contracting.”

Overall August 2010 meals tax revenue fell 1% compared to August 2009.

With July revenue flat it brings the meals tax .5% less then this time a year ago.

The likely culprit in the downturn is continued high unemployment and a stalled economy according to Shawver. The good news is that the $4.4 million goal for additional funding to Roanoke City Schools is still above target.

July was 4.3% above the conservative estimate. August came in at 2% above the estimate. So far the trend is $22,659 above water with a total for the two months coming in at $742,582 towards the $4.4 million goal.

Shawver made it clear that “while the meals tax is performing better than estimated, it is performing worse than the prior year.”

Posted By Valerie Garner

Categories: Business, Education, Finance, Roanoke City Public Schools

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