Focus on ‘meals tax’ in Prince William Co. intensifies ahead of election
With the election less than a month away, the “meals tax” is becoming a focal point for some voters and candidates in Prince William County. (7News)
PRINCE WILLIAM COUNTY, Va. (7News) —
The sounds of chefs chopping smoked meats have gone quieter in the past year at Dixie Bones in Woodbridge, as owner Nelson Head has turned his focus on this upcoming election in an attempt to get rid of the new tax he blames for waning customers.
“Our volume fell by 20-to-25%,” Head said. “The day the tax came in, people got mad, threw things at our staff, wrote nasty reviews, stormed out, and didn’t come back.”
The “meals tax” is an additional 4% tax for prepared food and beverages handed down to customers. It went into effect July 2022, and Head told 7News he and other business owners quickly felt the effects.
Head said this tax is forcing would-be customers to opt for eating at home.
“With customers, it’s simple. They look at their check, and they decide after they look at their check, ‘Was it worth it or not? Was the food too expensive?’ If they think it’s too expensive, they don’t come back. The fact the ‘meals tax’ does, in fact, push checks higher is running off customers, and ran off customers, and that’s the effect it has had. We’ve got restaurants with less volume and higher rising expenses, and they’ve got to pay the ‘meals tax’ before they’ve paid for anybody else. That’s killing them. That’s killing these restaurants,” Head said.
As a result, Head has had to adjust his business practices.
“We’ve had to reduce our payroll by over a third since this tax came into effect. Look at the restaurant now. Look at it. We used to have four servers, a busboy, a manager, and three takeout people. We’re doing it now with two servers, one manager, and one takeout person,” Head said.
Head is not alone. He started a petition to get the “meals tax” repealed, getting more than 600 signatures from residents and business owners.
“You can’t dump [$30 million] in new taxes on top of them, and expect them to survive after they’ve been through Covid, inflation, and the general economic downturn,” Head said. “Every one of them are in dire trouble. Their dining rooms are empty, their servers who are left are only earning half of their tips, they’ve got skeleton crews.”
7News On Your Side took these concerns to the county’s elected leaders.
Prince William County Board of Supervisors Chair Ann Wheeler is a staunch supporter of the new tax and said she has not seen any noticeable ill effects for bars and restaurants.
“I haven’t seen restaurants closing. I know they have supply chain issues, but they would have that with or without the ‘meals tax’ in place,” Wheeler said. “The City of Manassas has a flourishing restaurant scene, as does the Town of Haymarket, and both of those have had a ‘meals tax’ in place for years.”
Wheeler said this revenue goes toward schools.
“We have a revenue sharing agreement in place with the schools, and 57.6% of every dollar we take in from the ‘meals tax’ goes to the school system directly,” Wheeler said. “Right now, we are just playing catch-up to make sure we have the same spending per pupil to be able to compete with other jurisdictions, in terms of salaries for teachers programs.”
Wheeler lost her primary election to remain chair of the county board.
7News reached out to the candidates vying for her seat, asking them if they would repeal the “meals tax.”
Jeanine Lawson, the Republican candidate who currently serves on the Board of Supervisors, sent the following statement:
Repealing the meals tax in 2024 is a top priority. This tax is suffocating family owned restaurants and squeezing consumers, especially our fixed and lower income families throughout PWC.
Deshundra Jefferson, the Democratic candidate who defeated Wheeler in the primary election, sent the following statement:
While we certainly need additional funding our schools, I would like to find a better way to bring in more revenue. Restaurants operate on thin margins and many are still trying to rebound following the shutdown. Plus dining out should be an affordable option for working families.
“If we don’t end this tax, I don’t believe half of these restaurants will be around four years from now,” Head said.
Early voting ends on November 4, with Election Day on November 7.
For more election information, click here. For information regarding Prince William County polling places, click here.