Meals Tax Increase Approved By Vienna Town Council, Temporary Option Rejected

VIENNA, VA — A higher meals tax rate will soon be on the table at Town of Vienna restaurants.

On Monday, Vienna Town Council voted 6-1 to increase the meals tax rate from 3 percent to 4 percent, effective Jan. 1, 2026. All council members except Sandra Allen voted in favor of the increase.

Fairfax County is implementing its own 4 percent meals tax on Jan. 1, 2026, but that won't apply in the Town of Vienna. The town's meals tax is charged on prepared food and drinks sold by restaurants, cafes, grocery stores, and other food service businesses but does not apply to unprepared grocery items.

An amendment by Councilmember Jessica Ramakis would have provided a sunset date for the 4 percent rate on Dec. 31, 2035 and return to the 3 percent rate in 2036. That failed 3-4, with Mayor Linda Colbert, Ramakis and Councilmember Roy Baldwin supporting the sunset date.

Ramakis said the meals tax increase as a temporary measure has been what town officials have been having discussions with the community about. The council member said officials have also heard concerns about the need to do more to support restaurants and other businesses.

"I think fiscal responsibility and rigorously evaluating our budget is a priority. It's a priority for me," said Ramakis. "I think the sunset would place helpful pressure on the town to ask tough questions about trade-offs in our budget."

Councilmember Chuck Anderson noted conditions have changed since Vienna Town Council was last discussing the sunset option in January.

"Fairfax County, has gone from zero meals tax to 4 percent and that's a big deal, because when we were originally considering this, we are talking about further disadvantaging our restaurants vis a vis their closest competitors in the county, and that was a valid reason, I think, for sunsetting," said Anderson. "Now Fairfax County has passed a 4 percent, and we're no longer talking about disadvantaging our restaurants but simply equalizing the rate to the Fairfax County rate."

Anderson also cited the town's final parks master plan, which identified an estimate of $25 million needed over 10 years for improvements to current facilities. Altogether, Anderson said the town usually spends $40 million to $50 million for all capital projects in a 10-year period. Existing meals tax revenue helps support the town's capital improvements.

"You can see we're going to need this money, one way or the other," said Anderson. "I do not want to put a sunset on this, because I also believe it, it looks as if we're tying this to a specific capital project. In my mind, I'm certainly not doing that. I'm certainly not essentially sold on the financial feasibility of an aquatic center."

The temporary meals tax was originally proposed as a way to fund a possible indoor pool and fitness center at the town-owned annex property (301 Center Street South). However, Town Council has not committed to the facility.

Allen shared opposition to a meals tax increase, noting opposition to the proposal and that an increase would be passed on to diners.

"It is unacceptable that this body is continuing to push this 1 percent and at the beginning, it was to build the pool," said Allen. "Now it's to fund other projects, other projects that other council members have put in place."

Councilmember Ray Brill, who introduced the 1 percent meals tax increase motion, pointed to examples of projects that could be accelerated with more revenue. For example, Brill cited $1.4 million for Vienna Community Center parking lot and $1 million Town Green improvements planned for the 2036 bond year under the current capital funding plan.

"There [are] some projects that can be done more quickly with this 1 percent," said Brill. "We in Vienna are trying to take care of our residents. We're doing a good job. This allows us to do it even more quickly."

Baldwin noted that the public notice published ahead of last November's public hearing on the meals tax mentioned a 10-year limit for the meals tax increase. He said it did not mention the proposed pool and fitness center as the use for the extra revenue. Baldwin said he would also vote for an increase without a sunset so the annex property wouldn't wait up to a decade for development.

"Whatever we decide to do with the annex property will cost money that is not in our budget," said Baldwin. "What I would say to all of those town residents who have expressed their opinion on this subject in a valid way, and I would say they are not wrong, but I would just point out that there is no other responsible way to pay for whatever the Town Council decides to do with that property."

On the annex property use, Councilmember Howard Springsteen said, "I think the pool and the fitness center is a great aspiration. I'm concerned about with all these other projects backing up how we're going to pay it."

Colbert agreed that the town advertised the meals tax proposal as having a sunset date. She supported the sunset option but acknowledged future Town Councils could make changes to lower, raise or keep the 1 percent addition. The mayor expressed support for the meals tax revenue as a funding source.

"I do think that the meals tax is a good way to raise funds for our community. It's not a real estate tax," said Colbert. "We're not raising everyone's real estate tax. That is something I know that this council has done a good job at, either holding it firm or lowering it."

Before the vote, Vienna-based pub Hawk & Griffin released a statement on social media opposing the meals tax increase. The pub said restaurants make profits from three of 100 customers and that little changes could be the difference between staying open and closing.

"Under the current meals tax, the Town of Vienna’s restaurant tax exceeds our profits. Enough is enough. We must take a stand," Hawk & Griffin shared. "Any town council member who votes for this tax increase will no longer be welcome at Hawk & Griffin."

Caffe Amouri owner Michael Amouri wrote on social media that the proposed pool and fitness center is costly and unnecessary.

"Your own budget projections show that the meals tax will not cover the cost of building the facility and that it will run at an operating deficit of $1M-$1.5M per year," Amouri wrote. "Nothing has changed in the viability of this proposal. This is still a bad idea and financially irresponsible given the financial impacts of the Federal Government actions in the last 7 months."

Town Council will discuss potential capital projects, including the pool and fitness center, at a Sept. 15 work session at 7 p.m. at the Vienna Police Department Community Room, 215 Center Street South. A vote on the capital improvement plan is planned on Oct. 27 at 7:30 p.m. at Vienna Town Hall, 217 Center Street South.