Covering Annandale, Bailey's Crossroads, Lincolnia, and Seven Corners in Fairfax County, Virginia

Supervisors consider a meals tax

The Fairfax County Government Center.

The Board of Supervisors approved a motion May 21 calling for county staff to consider a proposal for a tax on restaurant meals of 1 to 6 percent.

The measure passed on a 9-1 vote. Supervisor Pat Herrity (Springfield), the only Republican on the board, voted against it.

Supervisor Dalia Palchik (Providence) presented a joint resolution on revenue diversification with Board Chair Jeffrey McKay and Supervisor Kathy Smith (Sully).

The resolution directs County Executive Bryan Hill to present “options for revenue diversification, including implementation of a meals tax,” to the board’s Budget Committee on Sept. 17.

The presentation by Hill would include the impact on revenue of various meals tax percentages ranging from 1 to 6 percent, a comparison with meals taxes in other jurisdictions in the region, the timeline and cost of implementation including costs for the industry, and a community outreach strategy.

“Over the past 10 years, real estate tax revenue has increased from 63.5 to 66 percent of the county’s entire general fund revenue,” Palchik said. “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.”

The county’s efforts to rein in costs have not been enough to enable the county to continue to provide core services,” she said. In addition, “We continue to be challenged by chronic inadequate state support for schools.”

Palchik noted a recent study by the Virginia General Assembly’s Joint Legislative Audit & Review Commission that found “the state uses a complex and unreasonable funding formula that results in the underfunding of schools by $1,900 per student when compared to the national average.”

If the JLARC recommendations were fully implemented, she said, Fairfax County Public Schools would receive more than $568 million in additional funds this year.

In 2016, Fairfax County voters rejected a ballot measure that would have established a 4 percent meals tax with 53.8 percent voting No. A state law enacted since then allows localities to impose a meals tax without a referendum.

During the board’s discussion, Supervisor James Walkinshaw (Braddock) said that while he supports a meals tax, the county should also look for opportunities for additional tax relief. McKay agreed that a dedicated portion of the meals tax revenue should go to tax relief.

Herrity said he opposes a meals tax because it is a single-industry tax that the restaurant industry doesn’t support and it disproportionately affects low-income residents. He said the board should focus on cutting spending instead of generating more taxes.

McKay noted that the resolution does not impose a meals tax; it merely collects data to inform a future decision.

13 responses to “Supervisors consider a meals tax

  1. A copy of the e-mail sent to Chairman and Jimenez – Chairman was quoted in the news article published saying people eating in Fairfax don’t contribute to our schools:

    “I mean come on guys -Chairman mack says and I paraphrase – people coming into Fairfax to eat don’t support the local schools -we need a meal tax because we need more money for our schools.
    Joke right? – Really, so people spending money in Fairfax are not contributing? – You guys are joking right? I realize you two aren’t the brightest bulbs in the pack – but last I checked – a Fairfax restaurant taking in money pays property taxes (either directly or the property owner), pays sales tax, employs folks who live or shop in Fairfax. ”
    Charmian and BoS – Fairfax has not a tax problem – its has a spending problem funding failing schools – starting with paying the Super around 400k…

    1. Outside of some of the off the cuff remarks by Mark, he brings up some valid and salient points but discredits himself by sounding like some unhappy, crazy old white dude!

      Here is my take: first the BoS should implement a special property tax surcharge on the landlords that have turned their single family homes into absentee landlord multiple non-family rental properties. I can count at least two dozen in my neighborhood; I am certain there are more. Suffolk County, NY implemented this and it did two things: it reduced the number of boarding houses substantially and increased revenue for those who wished not to comply.

      Secondly voters need to oust County Attorney Descano for he will surely not enforce any tax laws on landlords for turning their homes into apartment buildings. His record for making zoning enforcement difficult and returning criminals back onto the streets are well known, just ask the zoning inspectors and FCPD Chief Davis respectively.

      So I ask the BoS, start thinking about some new ideas for revenue before you tax the folks that want to live in Fairfax, the Fairfax you all promised us thirty years ago, i.e. Gerry Connolly!

  2. This is a terrible idea especially when restaurants are struggling and the average person has cut back on eating out. This will not keep Fairfax County from raising property tax it will only add another tax burden on the population.

    1. All this is true Corey, but from what I have been able to learn from my experience, most Fairfax County businesses and business associations, such as the local Chambers of Commerce, strongly support Fairfax County’s elected officials who are almost uniformly Democrat.

      Therefore, when Democrat elected officials take actions which seriously harm these local businesses’ viability (for example, by closing down restaurants to protect citizens from a virulent global pandemic; or this case, to impose a new tax on a specific type of local business (restaurants) to diversify and expand Fairfax County’s tax base so the County’s bureaucracy can continue to grow and provide excellent salaries and benefits to our County, including public school, employees) the least of my concerns is how this will impact the local businesses who literally cater to and fund the elected officials’ well-funded campaigns.

      Especially in this instance, since this is a voluntary tax.

      I can avoid a Fairfax County meal tax by selecting a restaurant outside of Fairfax County, and pay that local jurisdiction’s meal tax. Or I can avoid it entirely by buying my own groceries and eating at home, but only after paying State (and any Local) sales tax.

      When you think about it deeply, it is so hard for our elected County officials to adequately fund Fairfax’s government because there is not enough tax revenue. As our Democrat elected officials note, we desperately need more taxes.

      So many commenters claim we should cut back, but all government spending has supporters who will fight fiercely to protect their coveted government spending. Poor put upon elected officials are in the role of having to cajol their citizens to pay more to support the growing County bureaucracy.

      Let’s be honest, no gasoline powered chainsaw welding economist like Argentina’s President is going to get elected in Fairfax County. Nope, we want to grow our government, and for that we need more and higher taxes.

      Maybe, if we can elect a Democrat Governor, Virginia can institute the so-called “rain tax” that was all the rage in Maryland a decade or so ago.

      “Yes We Can!!!”

  3. First they give themselves a hefty salary and then they want to milk taxpayers who already suffer from the twin burden of rapid and unreasonable rises in assessments along with increased rates. Instead of showing us the “statue of liberty” budget that talks only about a few hot topic incremental increases, it is high time they lay the entire budget open for a detailed inspection and rejustification. I suspect there is a lot of fat concealed within those deeply ingrained budget buckets that never come up for review. Also little information on how public resources are managed and funded. We have a lot of volunteers and donations yet hear nothing about them.

    1. It’s all about money, money, money – not going to the community for sure. As if the high living cost is not enough… I fail to see a corresponding increase in the quality of living standards in this area- conversely, it is deteriorating. It is unbelievable that I cannot walk in my neighborhood, near AHS, without feeling unsafe nowadays. It used to be not like this at all. What is going on?

  4. The only way to credibly address this issue is by holding another referendum. This was the case before the NOVA delegation to Richmond rammed through a bill depriving voters of the ability to directly decide this issue. There was no reason for that change other than to deal with the inconvenient likelihood that voters would continue to oppose a meals tax. If that’s correct, then this so called joint “resolution on revenue diversification” is actually nothing more than an invitation for the BOS Democrats to usurp voter rights.

  5. Yes we can – stop with your non-sense – less than 50% of the registered voters in Fairfax voted -and the Chairman barley beat his opponent -so no – the majority of Fairfax registered voters do not approve of the Board…so please stop – I am tired of proving you wrong – its like a full time job -and, you can at any time donate more of your money to Fairfax coffers – I am sure the BoS (except the lone sane member) would relish the opportunity to waste it….

  6. Mark, in the USA, while voting is right for some, it is not mandatory.

    You are not a mind reader, and you do not make the rules. When a registered voter fails to vote, it does not mean officially, nor has it been understood to mean, that they oppose the policies and decisions of the people elected into office.

    More to the point, if all those registered Fairfax County voters who failed to vote were so opposed to the policies that have been enacted, and are being advocated for, by the long established Democrat super majority on the Fairfax County Board of Supervisors as you claim, why did they fail to vote for their opponents?

    No, the reality, which you are having a difficult time accepting, is that there is a substantial percentage of Fairfax County registered voters who have been satisfied with the status quo, so they don’t feel the need to exercise their right to vote in Fairfax County Board of Supervisors elections.

    Perhaps sometime in the distant future, Democrats on the Board of Supervisors will institute one or more policies that the voters of Fairfax County will rebel against.

    As a longtime resident and observer, my prediction is that the Fairfax County Board could institute a 4 percent meals tax without a referendum, and would encounter some, but manageable, opposition. However, the Board may decide not to do so if they are uncertain of the potential opposition, because more than anything incumbents do not want to lose re-election.

    Fairfax County may not be as much a one-party jurisdiction as California, but it is close.

      1. Great substantive comment.

        Sorry to bust your bubble, rain on your parade, but I’ll comment as long as the moderator of this site allows me to.

  7. The pretense is that no resident of Fairfax country eats in Fairfax county. We are not as dumb as our supervisors. The whole idea is just going to impact food servers. So now instead of 15 to 20 percent, it will be 9 to 14 percent depending on level of service.

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