Business Owners Speak Out Against 'Add-On' Tax

Calling it “unfair” and “divisive,” business owners from across Alexandria made their way to City Hall Saturday to voice their opposition to a proposed commercial property “add-on” tax that will fund transportation projects around town.

The City Council heard testimony from more than 25 speakers on the subject during a scheduled hearing. Council will make a final decision on the tax, which is , in early May.

“We realize the need for transportation in the city,” said Mike Anderson, owner of Mango Mike’s restaurant and the chairman of the board of the Alexandria Chamber of Commerce. “We’re just saying spread this [burden] around.”

The Chamber collected almost 500 signatures in a petition against the tax, according to President Tina Leone.

Adrien Cotton, owner of , a personal training and yoga studio in Old Town, said the tax represents “a hit we cannot afford to take.”

“Massive tax increases like this one will cause many of us to close,” she said.

To amend the looming tax burden, the city has proposed reducing business license taxes for smaller businesses.

Bill Pugh, a Quaker Lane resident who does not have a car, spoke in support of the tax. Pugh believes the city must invest in transportation projects for reasons of “basic safety, especially in the West End.”

Only a handful of speakers came out in support of the tax, but all spoke of a need to improve transit and accessibility to the West End.

The two projects at the top of the city’s list are upgrades to the Beauregard-Van Dorn corridor and enhancements to DASH bus service. Both projects were moved higher up the priority list following public discussion. They are seen as important measures to counter the congestion expected to arise once the Mark Center opens in the West End later this year.

During a brief presentation before the hearing, city staff said the tax was brought up as a way to help create a longterm transportation plan for the city and to replace state funding losses.

Rich Baier, Alexandria’s director of Transportation and Environmental Services, also mentioned the adoption of an add-on tax by neighboring Fairfax and Arlington Counties.

“We need to be mindful into how we’re part of the region,” said Baier, who also mentioned that the adoption of a tax by the city’s neighbors is not in itself an argument for the tax.

A group of small business owners staged a protest in Market Square before the hearing. Hiding from Saturday’s rain underneath the band shell in front of City Hall, they carried signs reading “Add-On Tax Unfair” and “Vote No Add-On Tax.”

Several speakers at the hearing, including some with no affiliation to area businesses, cautioned council members not to “sell it as a favor” by reducing the proposed tax. Others said council members could lose their jobs at the next election if they decide to adopt the measure.

“I though there were some great comments,” Anderson said. “It was not a name-calling session. Everyone was very professional. … Hopefully the council saw a broad-base hesitation for the tax.”