Fairfax County officials are getting closer to a decision, but they haven’t made a commitment yet on whether will implement a meal tax in their next budget discussions.
One top official claims that even if a funding plan is implemented, it will not solve the county’s financial problems. There is a gap of $292.7 millions between the expected revenues and expenditures, which must be closed in the next year.
Board of Supervisors chairman Jeff McKay touched briefly on the meals tax during a meeting between the Board and Fairfax County representatives in the Virginia Senate House of Delegates yesterday (Tuesday).
McKay and his colleagues did not indicate, as they have in the past, which way they might lean on the issue of whether Fairfax should join the list of Virginia localities that tax meals from restaurants and food service establishments by up to 6%.
The board chair stated that while a meal tax is not the answer to the budget problem, it could be a part of the solution.
According to county officials, if the meals tax is implemented, it would generate $33 million per year for each percentage point that’s added on top of the state/local sales tax. If the tax was 6% at its maximum, it would be $198 million.
County Executive Bryan Hill also suggested hotel, admissions, and probate tax to boost revenue without increasing the tax burden for property owners.
McKay stated that a meal tax was “not a significant amount, but it is not a panacea” at the event on Dec. 10. The 90-minute meeting saw no other elected officials address the issue.
The state required Fairfax County, until a few short years ago to hold a referendum on the issue before imposing any meals tax. This measure was twice defeated at the polls, but when Democrats took control of both the state legislature and executive branch in 2020, this requirement was dropped .
supporters claim that a meals-tax will diversify Fairfax County’s tax structure and reduce its overdependence on property taxes. The restaurant industry has already mounted a campaign against the potential tax. Other opponents claim that it will increase government spending and not reduce the tax burden for residents.
Hill will present his budget plan for fiscal year 2026 by mid-February . The Board of Supervisors will make the final decision about whether or not to implement a meals tax. They must adopt a budget by May.
County officials have said that if a meal tax was implemented in the budget for fiscal year 2026 which goes into effect on July 1, 2020, it would not be implemented until January 1, 2026.
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FairfaxGOP originally wrote this and published it as Democrat Controlled Fairfax County meal tax is still on the menu for consideration in the upcoming budget