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19 <br />7.3 County Pre aced <br />Food and x cols Tax <br />There is only one example of this tax at present, which is in Mecklenberg County, and it is <br />totally dedicated to visitor services and the building of a new convention center. This is a 1 % <br />tax levied on all prepared foods and beverages including restaurants, cafeterias, caterers, bars <br />and delicatessens. The Prepared Meals Tax, if levied in Orange County, would generate the <br />following revenue historically: <br />GROSS RETAIL SALES AND SALES TAX COLLECTIONS IN BUSINESS <br />CLASS OF 306 FOR ORANGE COUNTY FOR SELECTED FISCAL YEARS <br />FISCAL <br />YEAR' <br />GROSS <br />COLLECTIONS <br />GROSS <br />RETAIL SALES <br />PER <br />0.1% <br />PER <br />1.0% <br />1985 -86 <br />$1.925,661 <br />$69.541,722 <br />$69,541 <br />$695.417 <br />1986 -87 <br />$1,669,648 <br />$61,516,923 <br />$61,516 <br />$615.169 <br />1987 -88 <br />$1, 876 ,078 <br />$66,227,328 <br />$66,227 <br />$662,273 <br />1988 -89 <br />$1.815,537 <br />$65,588,106 <br />$65,588 <br />$655,881 <br />1989 -90 <br />$2,008,740 <br />$69,619,092 <br />$69,619 <br />$696,190 <br />• Fiscal year runs from July 1st through June 30th. <br />Therefore, a OS% tax would generate between $330= and $350,000. These funds would constitute <br />a new source of revenue and, like the Occupancy Tax, would require legislative approval in the <br />coming General Assembly. <br />This revenue source, if approved, could only be implemented in fiscal year 1992 -1993. In addition, <br />the NC Restaurant Association has identified seven specific criteria that must apply prior to their <br />legislative support for the legislation. The most important of these being a 90% dedication of all <br />revenues generated to an approved visitor services program. <br />Although the concept of imposing any new taxes right now is politically sensitive and problematic, <br />public opinion indicates that any newly identified revenue sources for visitor services should be <br />allocated to a new program. It is the consensus of the Task Force that an educational program be <br />initiated to brief our state, county and municipal officials of the direct benefits attributable to a <br />professionally managed Visitor Development Authority. In addition, the Visitor Development <br />Authority will undertake a minimum of two public forums to evaluate public sentiment regarding a <br />county -wide visitor program and will make contact with the local hotel /motel association and <br />local restauranteurs to build a consensus for any new tax based initiatives. <br />10 <br />