Proposed Meals Tax Hike Returns For Vienna Town Council Consideration

VIENNA, VA — As Vienna Town Council returns from its summer recess, a proposed meals tax increase is back on the table.

In January, Town Council had deferred consideration of a temporary 1 percent meals tax increase to Aug. 25. If the matter advances on Monday, Town Council could choose to advertise for final adoption on Sept. 15.

The temporary meals tax hike implemented over 10 years would help fund a proposed indoor pool and fitness center at the town-owned annex property (301 Center Street South). The town lacks a publicly-owned fitness center and pool, although Fairfax County has recreation centers nearby in Tysons and Oakton, and the Vienna Community Center has several recreational features.

The Town of Vienna has a 3 percent meals tax charged on prepared food and drinks sold by restaurants, cafes, grocery stores, and other food service businesses. It does not apply to unprepared grocery items. The meals tax revenue goes toward the town's debt service for capital projects. Fairfax County is implementing its own 4 percent meals tax on Jan. 1, 2026, but it won't apply in the Town of Vienna where a meals tax already exists.

If adopted with a 10-year sunset, the 1 percent meals tax hike could start on Jan. 1, 2025 and end on Dec. 31, 2025.

Town officials estimated meals tax revenue could help open the pool and fitness center 10 years earlier than under the normal capital budget funding process. The town previously used a temporary meals tax increase from 2002 to 2008 to pay for the Vienna Town Green.

According to a September 2024 presentation to Town Council, project design and construction could cost between $18 million and $20.8 million based on 2024 estimates, or $20.9 million to $26.5 million based on 2029 estimates.

In July, Town Council directed town staff to prepare a framework for a capital fundraising campaign utilizing donors, which could supplement funding beyond meals tax revenue. The Vienna-headquartered Navy Federal Credit Union has offered to jumpstart the project by advancing initial design funds as an interest-free loan. In return, the credit union is seeking an institutional membership with a number of pool and fitness center memberships for its employees.

Vienna Patch's poll with nearly 500 responses found nearly 79 percent oppose a temporary 1 percent meals tax hike to pay for a pool and fitness center.