By Heather Michon
Correspondent
Fluvanna County’s new food and beverage tax took effect on Aug. 1, and some restaurateurs and winery owners have questions, particularly about what happens when a customer only orders a beverage.
The Board of Supervisors raised those concerns at its meeting on Wednesday night (Aug. 6).
“So if I were going to Blue 53 or Sal’s, if I were to have a drink–let’s call it a soda–and I ordered no food, would that Dr. Pepper be subject to the food and beverage tax?” asked Mike Goad (Fork Union).
In that scenario, “they should not be charging the four percent,” said County Attorney Dan Whitten.
The same applies in local wineries. If you just order a glass of wine, it is not taxed; if you add on a cheese plate or a salad, it is taxed.
“So why don’t we call it a ‘food and beverage with food’ tax?” Goad replied.
Whitten explained that it was simply the way the state code was written. The only exceptions are places like Charlottesville, where the law allows them to set higher rates and apply the tax to beverage-only purchases.
Goad said the county may need to step up communications with business owners to help them understand how the tax works.
Commissioner of the Revenue Mel Sheridan did not disagree, but noted, “we are six days into a new program, and that’s got a learning curve.” As with any new tax, it will take people some time to adapt.
Fork Union water
Supervisors took the next step in securing Fork Union’s water and wastewater supply, approving contracts with Dewberry Engineering to allow the firm to design a new system for the Fork Union Sanitary District (FUSD).
The project stems from a 2021 special use permit granted to Dominion Energy to build a lined landfill near the old Bremo Power Plant to contain decades of toxic coal ash currently being held in covered ponds near the site.
This raised concerns about the potential for groundwater contamination within a 1.5-mile radius of the landfill, including two FUSD wells and several private home wells.
Dewberry recently presented preliminary plans for a new system that would remove those risks by replacing wells with a raw water line running from the James River Water Project to a new water treatment and wastewater treatment plant to be constructed near Fork Union. Now, Dewberry will be tasked with turning their preliminary sketches into a working plan.
The design phase will take about a year and cost $1.7 million.
Fluvanna County will not pay out-of-pocket for the design phase or future construction, with Dominion having committed $47.1 million for water system improvements.
Pleasant Grove paving
The supervisors also approved a $200,000 contract with ProSeal Services to pave some of the gravel roads within Pleasant Grove.
This will include the road and parking area near Pleasant Grove House and the road and parking lot near the soccer fields. They will also install nine speed humps to make sure people stay within park speed limits.
The bid came in about $21,200 over-budget, but was the lowest of the four bids received. Supervisors unanimously approved the additional allocation of funds along with the contract.
