Monday, March 14, 2011

Food trucks (read: you) may have to pay sales tax

Recently, there has been an explosion of food trucks in D.C.  And as brick-and-mortar space becomes more and more of a commodity in our booming neighborhood, new and upcoming eateries often have to turn to food trucks.  Even some brick-and mortar restaurants are introducing them, such as District of Pi and Austin Grill

But if one city council member has his way, that growth could be hampered.

D.C. Council member Jack Evans is introducing legislation that would require food trucks to pay the usual 10% sales tax on prepared food.  Right now, food trucks are only required to pay about $1,500 in permits and other fees.  The 10% sales tax, of course, would be passed along to the consumer, making these characteristically cheap food trucks 10% more expensive.

According to city government officials, there are now 488 “roadway vendors” (food trucks, ice cream trucks, National Mall vendors, etc.).  There are also 642 “sidewalk vendors" (hot dog stands, t-shirt stands, etc.).  All of the vendors currently pay the $1,500 annual fee, but this bill, if passed, would require them to all pay sales taxes instead.

Read more about it at The Washington Post.





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