Fairfax County to look into implementing potential meals tax
FAIRFAX COUNTY, Va. (DC News Now) — Virginia’s largest county was looking into adding a tax that could mean eating out and getting prepared foods could be more expensive.
By a 9-to-1 vote, the Fairfax County Board of Supervisors voted to direct staff to analyze the potential of implementing a meals tax.
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The tax, which nearly all surrounding localities already have, would be levied on food at restaurants, plus prepared foods at grocery and convenience stores.
Alexandria, Arlington, and Prince William counties all have meals taxes on the books — as does several of the towns in the area including those within Fairfax County’s borders such as Herndon, Vienna and the City of Fairfax. Those tax rates range from 3% to 5%.
The closest locality without a meals tax is Loudoun County.
Supervisor Dalia Palchick, whose initiative was to direct staff to research the tax, was introduced on Tuesday. She said the county was looking to diversify its tax base.
“As we look for additional tools to diversify our tax base, we cannot leave any in the toolbox,” Palchick said.
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According to Palchick, the county’s General Fund has become more reliant on real estate taxes — which made up 63.5% of the fund a decade ago but now makes up 66%.
“This is creating an affordability challenge for all Fairfax County residents, particularly those on fixed incomes and those who are already struggling to make ends meet in a high-cost-of-living region,” she said.
This comes after the board voted to increase the real estate tax rate as part of the approval of the FY25 budget. Among the reasons for that, supervisors said, was underfunding by the state when it comes to schools.
However, the lone supervisor to oppose the tax analysis, Pat Herrity, said the problem is spending.
“Without an increase in spending greater than inflation and population growth, you don’t have the need for revenue diversification,” he said. “I think we need to look at spending.”
Fairfax County voters previously voted against a meals tax increase in 2016, but due to a state law passed in 2020, supervisors can now pass a meals tax without a ballot referendum.
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