In response to the COVID-19 crisis, the Fairfax City Council last week extended the payment deadline for meals and transient-occupancy (motels) taxes for 90 days. “The fiscal impact will be negligible,” said Commissioner of the Revenue Page Johnson. “We’ll be waiving penalties and interest for the duration of this crisis.”
“The filing deadline is the same, but they can take up to 90 days to pay,” added City Treasurer Tom Scibilia, during the Council’s online, March 31, meeting. “And they can still collect their 3-percent commission.”
Since restaurants can currently offer just takeout and deliveries, said Mayor David Meyer, “For April, the amount of income and [therefore] meals tax they’ll pay will be very small, for many of them.”
Councilwoman Jennifer Passey asked, “What happens if this goes on too long and a business has to close and just can’t pay?”
Scibilia explained that the company’s owner or management would still be responsible. “This is not a forgivable tax,” he said. “Even if you declare bankruptcy in your business, the tax is to you, personally.”
Since last week’s Council meeting was an emergency one – just to vote on this issue – the members will have to hold a public hearing on it during their regular, April 14 meeting and then vote on it again.