Mayor: Alexandria’s Tax Revenue Hard Hit by Coronavirus

Alexandria’s consumption-based tax revenue took a 34% hit from February to July, according to a city monthly financial report.

Mayor Justin Wilson revealed the revenue loss on Facebook by posting a report showing the cumulative impact on consumer spending in calendar years 2019 and 2020.

“Last July, the City collected $2M (million) from our dining tax. This July, it was $1.2M,” Wilson wrote on Facebook. “Our hotel tax collected $200K (thousand) versus $1.1M last July. Together, the consumption-based tax revenue loss from Feb to July has been over $12M, the equivalent of 3 cents on our real estate tax rate.”

While sales taxes increased by 3% in June in a year-over-year comparison, meals sales taxes dipped 41% from $2.1 million to $1.2 million in July; transient lodging tax revenue fell 82% from $1.1 million to $202,681 in July; admissions tax revenue went down 98.5% from $63,655 to just $963 in July; and a 26% loss in recordation tax revenue.

Patricia Washington, president and CEO of the Alexandria Convention & Visitors Association, commented on Wilson’s post that the impact has been severe.

“The economic losses and the disproportionate impact on businesses in the hospitality and tourism sector have been devastating,” Washington wrote.

City Council will receive this and other information in its monthly financial report at a legislative meeting on Tuesday night (Sept. 22). Last spring, Council passed a drastically altered budget to contend with the pandemic.

“That significant… drop off means a lot of businesses are working below the profit line,” Elizabeth’s Counter owner Rob Krupicka commented. “It means the next year is going to be really challenging for retail and restaurants and hotels.”

The city is also now offering a second round of grants for small businesses.

For residents, personal property taxes are due on October 5, although there is a proposal on the table to delay the due date to December 15. Real Estate taxes are also due on November 15.

Council, on Tuesday night, will also discuss extending the city’s state of emergency declaration to March 31, 2021.