Fairfax County meals tax goes into effect on Jan. 1
New meal tax takes effect in Fairfax County starting Jan. 1
If you're planning on eating out in Fairfax County, your bill may be more expensive starting on Jan. 1. A new 4% meal tax is going into effect at the start of the new year. FOX 5's David Kaplan explains.
FAIRFAX COUNTY, Va. - If you're planning on eating out in Fairfax County, your bill may be more expensive starting on Jan. 1.
Last spring, the Board of Supervisors passed a 4% meals tax. It goes into effect at the start of the new year.
Big picture view:
This tax applies to places that sell prepared foods and beverages sold as a meal, including bars, restaurants, convenience stores and concession stands.
Advocates for this tax say it'll help keep property taxes down, fund a range of county services, and bring Fairfax County in line with nearby municipalities that already have a similar meals tax.
It passed the Board of Supervisors by a 9-1 vote earlier this year, but it’s tough to find many people who are happy about another tax on businesses, where the margins can already be razor-thin.
Fairfax County residents rejected a meals tax twice in referendum votes, but in 2020, the Virginia legislature passed a law that allowed counties to pass a meals tax without a referendum, but capped the tax at 6%. The Fairfax County board settled on 4%.
What they're saying:
Residents who spoke with FOX 5 say they’re worried about the impact on restaurants.
"[It’s] unfortunate because you want to encourage local businesses and come out and eat more, not less. So, obviously, any price increase makes that decision a little harder to stay home or get groceries in," Fairfax County resident Anisha Thadani said.
"Things are getting more expensive for everybody, so maybe this is probably going to lead to people eating out less and things like that," resident Grant Herzberg told FOX 5. "But if it's going for a legitimate service and the money's actually getting where it needs to be, then I can see a justification for it. But obviously, that's going to hurt business a little bit."
Hamid Jadali runs Red Tomato Pizzeria and is worried.
"For me, we have to see what the reaction is for customers. So this — all taxes, and all expenses — I think they're going to ruin all the businesses. Small businesses are going to go down the drain with all the taxes," Jadali said.
Dig deeper:
There is a small amount of this tax that businesses can get back if they stay on top of getting these funds to the county.
The county expects this to bring in $65 million in the next fiscal year.