Loudoun County voters will choose whether to start taxing meals up to 4 percent when they go to the voting booth Tuesday.
The tax would apply to food and beverages sold in restaurants as well as prepared foods sold ready-to-eat in grocery and convenience stores. It would apply to beverages that are not factory-sealed — for example, a cup of coffee or fountain soda.
It also would apply to concessions sold at Washington Dulles International Airport.
The increase would generate about $13 million in annual revenue, which would go toward public school construction.
The tax is one way the county is trying to diversify sources of revenue in preparation for a $176 million budget gap officials expect next year, caused largely by a significant decline in the housing market.
A group called Loudoun Coalition Against the Food Tax, consisting of local residents, elected officials and local restaurants, argues that the tax would unfairly target local small businesses during difficult economic times.
“Twice before, Loudoun voters have wisely rejected a meals and beverage tax — in 1992 and again in 1998 — and for good reason: A meals tax is also extremely unfair, regressive and punitive on those least able to afford it, which are working Loudouners and those on the low end of the income scale,” said Nicholas Graham, co-founder of the group, which was formed in October.
Board of Supervisors Vice Chairman Susan Klimek Buckley, D-Sugarland Run, said she hoped Tuesday would result in a different outcome, since the revenue generated would go to schools.
Graham, as well as fellow co-founder Patricia Phillips, told the board Oct. 20 they oppose the tax.
Phillips told the board that defeating the meals tax would provide the supervisors an opportunity to cut more discretionary programs and focus on absolute necessities.
“We’re not talking about just tightening our belts,” Buckley said about the county’s economic difficulties.
She said a majority of supervisors support the meals tax, but said it was difficult to say whether the measure would pass on Tuesday. She pointed out that although a strong contingent opposing the tax has emerged, there is no strong consensus group in favor of the tax.
The Loudoun County Republican Committee also opposes the tax.
Charlie Jackson, spokesman for the Loudoun County Democrats, said the group is taking a neutral position on the meals tax.
