Meals Tax Hike Approved By Alexandria City Council

The Alexandria City Council voted to implement a 1 percent meals tax increase at a public hearing Saturday, May 12. The proposal, which would raise the tax from 4 to 5 percent effective July 1, 2018, has draw fierce opposition from business leaders.

Introduced in the midst of city budget discussions, the proposal will make Alexandria's meals tax the highest in Northern Virginia. In comparison, Arlington County and the Cities of Falls Church and Fairfax's meal tax is 4 percent and the Town of Vienna's is 3 percent. Fairfax County voters rejected a 4 percent meals tax on the ballot in 2016. Under the proposal by Councilmember Willie Bailey, the additional 1 percent would provide dedicated funding for affordable housing. The combined 5 percent meals tax and 6 percent sales tax would result in a 11 percent total tax for customers.

Mayor Allison Silberberg joined three other council members to give the tax increase a 4-3 vote, reported The Washington Post. Vice Mayor Justin Wilson, who is running against Silberberg in the primary race for mayor, opposed the tax, along with Timothy Lovain and Paul Smedberg. The council members said they wanted the tax revenue to go into the general fund.

Business leaders have been sending around a petition to stop the meals tax hike, citing a burden on businesses and low-income residents. "The meals tax disproportionately hits low income families who spend a larger percentage of their budget on meals," reads the petition. "It also leaves restaurateurs with less money to hire employees and grow their businesses."

The petition also seeks a 3 percent rebate on meals tax revenues to cover business owners' credit card fees needed to collect taxes.

Among the businesses and leaders urging council to oppose the meals tax hike were the Alexandria Chamber of Commerce, Del Ray Cafe, Eat Good Food Group and the Del Ray Business Association. In a letter to the council, the Del Ray Business Association board voted to oppose the tax increase, Alexandria Times reported.

"This tax needs to be spread among the entire community," Del Ray Business Association President Sue Kovalsky told the council, according to The Post. "Restaurants are closing their doors everyday, and restaurants wanting to open a second location are going to National Harbor, D.C. and Arlington.”

The council met at 9:30 a.m. Saturday at City Council Chambers, (301 King St., Room 2400) for the public hearing.

Image via Patch editor Emily Leayman