Proposed Meal Tax Hike Draws Business Opposition In Alexandria

When the Alexandria City Council adopts the fiscal year 2019 budget on Thursday, May 3, it will consider a meal tax increase proposal that has drawn ire from business leaders.

Under the proposal by Councilmember Willie Bailey, the meal tax would increase from 4 to 5 percent effective July 1, 2018. The additional 1 percent would be used to fund affordable housing.

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.

"Our small business-centric community in the Mount Vernon Avenue corridor is made up of many mom and pop businesses, a large proportion of which are restaurants," the Del Ray Business Association's letter reads. "The proposed tax will change the way people spend money on meals. While it may not seem like much, in an industry with very thin margins, it’s the pennies that add up to keep the doors open and our main street vibrant."

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.

The council is expected to formally adopt the meals tax hike on May 12.

What do you think of the meals tax increase? Let us know in the comments.

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Image via R. Kennedy/Visit Alexandria