DID YOU KNOW?
The average restaurant has a net profit of 4% (that’s just $4 earned for every $100 in sales)1. Starting July 1st, the City of Alexandria will receive $6 for the same $100 in restaurant sales2. That’s correct – the City makes 50% more
than the restaurant owners, who work tirelessly to keep their businesses afloat, employ others, and make our communities vibrant.
BACKGROUND
Friends of Alexandria Restaurants was formed in response to Alexandria City Council’s 11th-hour attempt to increase Alexandria’s Meals Tax and use the new revenue to bolster affordable housing in the City. The restaurant community whole-heartedly supports greater availability of affordable housing – and daily works to make it a reality – but we oppose this misguided and regressive approach.
Despite public outcry and formal opposition by the Alexandria Chamber of Commerce, Alexandria Economic Development Partnership, Restaurant Association of Metro Washington, Del Ray Business Association, and others, Council passed the tax increase in an ill-advised 4-3 vote.
OUR GOALS
In the near-term, we ask City Council to:
- Beginning July 1st, 2018, provide a 3% rebate to Restaurants for Meals Tax revenues collected and remitted to the City of Alexandria. This will help to balance credit card fees and administrative costs of collecting and remitting the Meals Tax.
- Beginning July 1st, 2018, reduce the penalty for late payment of Meals Tax to the City from 10% to 2%. Introduce a reasonable grace period before penalties and interest are imposed.
- Immediately amend the budget process such that formal public notification and public hearings are required before any tax increase is proposed, and again after the add/delete process (prior to adopting any budget or ordinance).
In the long-term, we ask City Council to:
- Propose/co-sponsor AND vote for legislation that rescinds the latest 1% increase to the City’s Meals Tax, returning the Meals Tax to 4% beginning in FY2020.
- Propose/co-sponsor AND vote for legislation that creates a full phase-out of the remaining 4% meals tax over a period of time not to exceed four (4) years beginning with FY2021.
WHAT HAVE WE DONE SO FAR?
MAY 10: Circulated a petition to inform the public and gauge opposition to the Meals Tax increase. So far, over 500 signatures and 100 comments have been collected from citizens, business owners, restaurateurs, and restaurant groups.
MAY 11: Sent a formal letter to City Council, opposing the increase on behalf of our group and the hundreds of petition signers, and demanding that they vote “NO.”
MAY 21: Sent a formal letter to City Council, recommending specific short-term and long-term actions they can take to repair the damage of adopting the tax increase.
MAY 29: We distributed a Legislator/Candidate Pledge to all candidates for and members of City Council in order to hold current and future Council members accountable for their actions.
WHAT WILL WE DO NEXT?
June 1: Results of the Pledge will publicized. We will urge Alexandrians to study the results before voting in the June 12 Primary.
June 12: The Democratic Primary needs attentive, informed voters, regardless of your registered party. Educate yourself on the issues and learn how to have maximum influence at the polls.
WANT TO HELP?
Contact us and we’ll let you know the best way to do so!
1. Source: National Restaurant Association Operation Report http://www.Restaurant.org
2. The Commonwealth of Virginia collects 6% sales tax on meals sales, of which 1% is returned to the City of Alexandria. When combined with the additional 5% Alexandria Meals Tax, the total remitted to the City of Alexandria is 6% of all meals sales.