Alexandria City Council Adopts Emergency Legislation to Provide $4 Million in Initial Tax Relief to Businesses Affected by COVID-19
For Immediate Release: March 25, 2020
At an emergency meeting held on March 24 by telephone in accordance with state law, the Alexandria City Council unanimously enacted an extension for payments by businesses of the taxes on restaurant meals and hotels. Although the taxes are not waived and must eventually be repaid, the action provides businesses with new short-term access to cash totaling approximately $4 million.
"City Council has acted quickly to start doing what we can to mitigate the economic impact of this pandemic,” said Mayor Justin Wilson. “Although we are working on many other ways to help, this initial tax relief is an immediate step we can take to improve business cash flow at this critical time for many in our community.”
No payments will be due until June 30, 2020, after which businesses may repay the funds over 12 months. No penalties or interest will be assessed during this period. Because these taxes are paid by customers and held by businesses until the funds are turned over to the City each month, deferment of payments is effectively a no-interest loan to businesses.
City Council also granted businesses additional payment flexibility for quarterly business license tax payments and certain late business tax payments; required online filing of business personal property tax returns while extending the filing deadline from May 1 to July 1; and extended the filing deadline for elderly and disabled tax relief applications from mid-April to July 1, 2020. City staff are contacting each business in Alexandria to make them aware of these changes.
For the details of each City Council action, visit alexandriava.gov/Revenue and view the meeting docket online. For questions from businesses about tax payments, email firstname.lastname@example.org or call 703.746.3903.
For inquiries from the news media only, contact Craig Fifer, Director of Communications and Public Information, at email@example.com or 703.746.3965.
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This news release is available at alexandriava.gov/114405.