Fairfax County considering food and beverage tax to help budget shortfall

FAIRFAX COUNTY, Va. - Diners in Fairfax County could soon start paying an additional tax on the food they order.

Leaders in Fairfax County are proposing a food and beverage tax as a way to help close the current budget gap. People aren’t too happy about the idea, that right now, is just a discussion.

"Whenever there is additional money that needs to be paid, I think everyone’s reaction is not to like it. I’m not very happy. I already think that it’s expensive to come out to eat, so I don’t know," Annandale resident Evelyne Kluessendorf said.

Fairfax County would be joining several other areas in northern Virginia such as Alexandria, Arlington and Prince William County that collect a food and beverage tax on ready-to-eat meals at restaurants and drinks — it would not include groceries.

"I don’t want anymore taxes. Honestly, we already pay enough on taxes and I don’t think right now the way the economy is, more taxes are going to help," said Jose Romero.

Fairfax County leaders say at the moment two-thirds of the county's revenue comes from real estate taxes but food and beverage tax could change this. 

At just 1%, leaders say the meal tax would generate about $35 million in revenue annually, costing diners on average about $50 a year if the rate remains the same. But the county is looking to set the rate anywhere between 4% and 5%.

County Supervisor Dalia Palchik says one-third of the food and beverage tax will be paid by non-Fairfax County residents who are commuting to or visiting the county. 

"We rely mostly on our real estate taxes and, you know, living here has become more and more expensive. Unfortunately, we don’t have a lot of options. It’s not something we want to look at but it allows us to diversify, schools, public safety," Palchik said.

If this food and beverage ordinance passes, the county will have to hire about 20 people to help collect the tax, costing almost $3 million. The Board of Supervisors are expected to meet next week to set the tax percentage, followed by a public hearing.