Author: Matthew Torres, WUSA9
FALLS CHURCH, Va. — Restaurants and bars in Fairfax County are preparing to implement the controversial meals tax starting on January 1.
Supervisors approved the 4% tax on all prepared food and beverages earlier this year despite residents rejecting a similar plan through two voter referendums. Among the establishments to levy the tax are restaurants, bars, coffee shops, convenience stores, food trucks, movie theaters, and sporting venues.
The popular Vietnamese vegetarian restaurant Chay in Falls Church is adjusting the system to reflect the tax. Owner Thi Le said he plans to inform customers, who could be seen waiting in line for a table, about the meals tax on New Year’s Eve.
“I wish they didn’t have to do it,” Le told WUSA9. “How much is enough? Taxes have been crazy in Fairfax County. It seems like people are paying more and more every day.”
The meals tax passed as the county faced a $300 million budget shortfall. Chairman Jeff McKay said it helped avoid a real estate tax increase. Supporters also said it helped avoid cuts to some school and county services.
“Without the meals tax in this budget, we would not be wiping out the penny and a half increase that the county executive proposed on the real estate tax relief,” McKay previously stated.
Diversifying revenue is a bigger issue as the board expects another challenging budget year. Earlier this month, the board discussed a budget shortfall forecast of $131 million.
Supervisor Pat Herrity, who voted against the meals tax, told WUSA9, “The meals tax doesn’t solve the budget issue what we need to do is a deep dive into our spending.”
He proposed limiting what is spent to support the county’s legislative agenda.
“What we really need to be doing is to go through those plans and identifying what makes sense to do and what makes sense to put off into the future,” Herrity added.
Gary Cohen, Glory Days Grill executive vice president, opposed the meals tax early on. He said implementing the change is arduous but not difficult. He said the real burden is on the taxpayers and loyal guests. He worries it will scare away customers.
“Fairfax County needs to find ways to reduce spending and not implement taxes on a industry that is struggling to survive,” Cohen said. “This is really an unfair tax on a single industry that has been hurting ever since the pandemic. We have struggled to find employees and we have battled the storms of tariffs, food and labor price increases, government shutdown, and generally uncertain times. The industry has had to raise prices to uncomfortable levels in order to survive, and every time we do, we lose guests.”
The county expects to raise $67 million in revenue through the meals tax.