Subject:
Title
Amendment to Town Code Chapter 6, Section 6-33 Levy, to Increase the Meals Tax Rate from 3% to 4%
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Work sessions: Sept. 16, 2024; Oct. 21, 2024
Results of Operations and Annex Long-Term Use Study: Feb. 12, 2024; Feb. 26, 2024; June 10, 2024,; Sept. 30, 2024; Oct. 7, 2024
Set Public Hearing at Council meeting: Oct. 28, 2024
Public Hearing: Nov. 18, 2024, left open for written comment until close of business on November 27th, 2024.
EXPLANATION AND SUMMARY:
On Nov. 18, 2024, a public hearing was held to get public input on the proposal to increase the Town's meals tax rate from 3% to 4%.
The meals tax is a local tax imposed on the purchase of prepared food and beverages sold by restaurants, cafes, grocery stores, and other food service establishments within the Town of Vienna. Currently, the Town assesses a 3% tax on these purchases. This tax is paid by consumers at the point of sale and collected by businesses on behalf of the Town.
The Town Council is considering increasing the meals tax rate from 3% to 4% in response to the growing demand for infrastructure investment and public facility upgrades. Over the years, the Town has experienced a substantial rise in community needs and expectations, particularly related to aging infrastructure, deteriorating streets, outdated public facilities, and other long-term capital needs. As the Town continues to maintain and improve its assets, additional funding sources are needed to ensure a reliable and sustainable infrastructure for current and future residents.
All revenue generated by the meals tax is dedicated solely to the payment of debt service related to capital projects as outlined in the Town's adopted Capital Improvement Plan (CIP). The CIP identifies and prioritizes long-term investments in roads, stormwater systems, parks, public buildings, and other critical infrastructure. The additional revenue from the proposed 1% incre...
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