Meals Tax Proposal Heads Back To Vienna Town Council After Deferrals

VIENNA, VA — After action on a proposed meals tax hike was deferred twice by Vienna Town Council, it will take up the issue again in the new year.

A public hearing on the 1 percent temporary meals tax to fund a pool and fitness center facility will be held at Town Council's Jan. 27 meeting at 7:30 p.m. Because action has been twice deferred, the proposed effective date of the temporary tax would be July 1, 2025 rather than Jan. 1, 2025. The 1 percent addition would sunset after 10 years.

A temporary meals tax has been proposed as a funding solution for a pool and fitness facility at 301 Center Street South, the former Faith Baptist Church building that the town purchased. The pool and fitness center facility was identified as the top resident preference from outreach by the town's parks and recreation.

However, opponents have raised concerns such as businesses already grappling with higher costs and the need for a facility with other Fairfax County facilities in nearby communities. Supporters have pointed to the benefits of having an indoor pool and fitness facility in town, especially when the Vienna Community Center did not end up getting them.

The Town of Vienna already has a 3 percent meals tax rate charged for prepared meals. The town says using a temporary 1 percent tax could fund the project sooner and get it to open by 2030. Without the meals tax addition, the other funding solution would be to put it in the town's capital improvement program. The town believes it would not fit into the capital funding plan until 2036, delaying the opening date to 2040.

The hearing comes after a Jan. 21 work session focused on the revenue model for the proposed facility. That includes not only the 1 percent temporary meals tax to fund construction but how the town could cover year-to-year operating expenses.

Membership could account for an estimated 70 percent of revenues based on 750 town resident memberships and 550 non-town resident memberships, according to a presentation from the town contractor. The proposed Town of Vienna resident rate for membership would be $480 annually or $40 monthly for youth, $660 annually or $55 monthly for adults, $960 annually and $80 monthly for households, and $540 annually and $45 monthly for seniors. Non-town residents would be charged higher rates, such as $1,200 annually and $100 monthly for a household.

The town had used a temporary 1 percent hike before from 2002 to 2008 to fund the Town Green. The meals tax applies to ready-to-eat meals but not groceries. Fairfax County is considering its own meals tax, but the Town of Vienna said it wouldn't apply within the town.