Despite residents voting against the issue twice before, Fairfax County leaders approved a meals tax amid a budget shortfall and economic uncertainty.
FAIRFAX, Va. — Fairfax County is set to implement a 4% meals tax, a move approved by supervisors in a 9-1 vote on Tuesday as part of its strategy to avoid budget hurdles.
The new tax, expected to generate approximately $67 million in annual revenue, allows the county to avoid a proposed 1.5-cent real estate tax hike and instead offer a slight rate reduction. Once it’s formally adopted next week, the new tax is expected to take effect in January 2026.
The meals tax has long been rejected by county voters in past referendums. It applies to prepared food and beverages served at restaurants, food trucks, cafes, and similar businesses. Supporters of the tax argue it offers much-needed revenue diversification in a county historically reliant on real estate taxes.
As the county is faced with a $300 million budget shortfall, Fairfax County Board of Supervisors Chairman Jeff McKay emphasized that the meals tax helped avoid cuts to essential services, including after-school programs, emergency shelters, and certain emergency services.
"These are not the nice-to-have things," McKay said. "Without the meals tax, we would not be wiping out the penny and half increase that the county executive proposed on the real estate tax."
Supervisors also reduced the real estate tax rate by a quarter-cent to ease the burden on property owners, particularly amid federal workforce reductions affecting many local households.
However, many residents and small business owners are skeptical of the new tax.Fairfax County resident Bob Spindel voiced his frustration by saying, “I’m very disappointed that they have to raise any taxes. I’d like to see them do more things with waste.”
Saeid Nikka, owner of Mazadar Restaurant in Fairfax, shared concerns about the possible impact on local dining and customer spending.
“We just went through this hard time,” Nikka said, referring to the pandemic recovery. “We’re uncertain again if this will negatively affect the business.”
Nikka fears the meals tax could discourage customers from dining out, reducing traffic to restaurants already operating on thin margins.
“It could make people eat out less often and actually lower revenue,” Nikka said. “Will they keep raising it to 6 percent, 8 percent, 10 percent? Where’s the line?”
While some residents remain wary, public safety advocates hailed the decision. Robert Young, President of IAFF Local 2068, said the meals tax helped restore $2.6 million for Emergency Medical Services (EMS) that were at risk.
“We knew going into this budget year that there would be service reductions,” Young said. “We appreciate that the revenue diversification that the meals tax brings to Fairfax County helped in our efforts to restore some of our services.”
However, Young noted that some frontline rescue companies, vital for emergency extrications and searches, will still be lost under the current budget.
Supporters of the meals tax argue it brings Fairfax in line with the majority of Virginia jurisdictions.
“We’re not enacting this tax in a vacuum,” Supervisor James Bierman said. “Sixty-two of Virginia’s 95 counties have a meals tax. It’s not out of step.”
Supervisors also approved setting aside $12 million to offset any potential impacts caused by White House policies.
They also voted for $119 million for Fairfax County Public Schools (FCPS), although it doesn’t meet the requested $250 million in increased funding, which would primarily support employee raises.
Republican Supervisor Pat Herrity was the lone vote against the budget plan, saying the county has a spending problem and not a revenue one.
“While I’m glad to see we are not cutting critical services, I am disappointed that spending continues to be out of control,” said Herrity.
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