Wednesday, September 11, 2024
On Sept. 17, during its Budget Policy Committee meeting at 3 p.m., the Fairfax County Board of Supervisors will hear County Executive Bryan J. Hill review information on all existing taxing authorities. Hill will report recommendations for strategies to diversify the county's revenue base and reduce overreliance on real estate taxes to pay for county services, including funding for county public schools.
The fiscal 2025 budget included raising the residential tax rate by three cents, leaving county lawmakers searching for more revenue streams, including the possibility of implementing a meal tax. Fairfax County voters rejected a meals tax twice. Most recently, a 2016 proposed 4 percent tax on prepared meals at delis, restaurants, and convenience stores failed. However, a 2020 Virginia state law allows jurisdictions to impose a meals tax without voter approval on a referndum. Virginia law allows counties to impose up to a 6 percent food and beverage tax, § 58.1-3833.
On May 21. 2024, the supervisors directed the county executive to include options for a meals tax in a range of one-to-six percent and revenue projections for each; comparisons with other meals taxes in the region; the timeline and cost for implementation, including estimates for businesses; and any limitations on the use of a meals tax's revenue.
Springfield District Supervisor Pat Herrity voted against the motion that directed the county executive to examine and report on revenue diversification options. The board voted 9-1 to consider a meals tax despite previous failed referendum in the county in 1992 and 2016. The referendums failed, with 58 percent and 56 percent opposed, respectively.
The county executive will provide a draft community outreach strategy for implementing the meal tax. As part of the implementation timeline, the supervisors anticipate that the outreach process will include substantive work with businesses, restaurants, and other businesses.
Unless otherwise noted, all meetings occur in Government Center conference room 11. All committee meetings in conference room 11 are broadcast on Channel 16 and streamed live online.