Meals tax could pay for schools

By Jason Peck

If enacted, the meals tax would apply to all prepared food in the county, from the drinks at Chili’s to the hot dogs at a 7-Eleven to the breakfast buffet at the Best Western Inn hotel.

It would also raise anywhere from $250,000 to $300,000 for the cash-strapped school system. And proponents say that out-of-county visitors would be paying for much of it.

“The tax is so minimal, they don't even know they're paying it,” Supervisor Bill Chase (Stevensburg District) said. “I'm all for it.”

The measure must first go before county voters, who narrowly rejected a four percent tax three times between 2004 and 2006. The county’s Rules Committee has until September to craft the legal language to reserve those funds for the school system.

Convincing voters could present a challenge. County supervisors have long maintained that enacting a tax took advantage of future growth. While a majority of the restaurants and eating establishments are currently located in the town, more are planned for the county.

And hotels, which fall under the meals tax, draw their money from nothing but visitors, taking the burden away from Culpeper residents.

On the other hand, town governments can enact a meals tax without taking it before the voters. That’s why town residents have been paying a meals tax for years.

The town’s five percent meals tax raised more than $1.5 million from from July 1, 2007, through April 30, 2008, according to town treasurer Neal Deane. Both Rappahannock and Madison counties have meals taxes. Fauquier and Orange counties don't, but the towns of Warrenton and Gordonsville do. Warrenton's meals tax raised $1.6 million in fiscal 2006.

The fourth time could be the charm. Several supervisors said that funneling the money to the school system could finally sway the voters.

"If you try that, it would really make a difference whether it passes or not," Hanoshn said.