Fairfax County considering food and beverage tax to help budget shortfall

FAIRFAX COUNTY, Va. – Diners in Fairfax County could soon start paying an additional tax on the food they order.

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Leaders in Fairfax County are proposing a food and beverage tax as a way to help close the current budget gap. People aren’t too happy about the idea, that right now, is just a discussion.

“Whenever there is additional money that needs to be paid, I think everyone’s reaction is not to like it. I’m not very happy. I already think that it’s expensive to come out to eat, so I don’t know,” Annandale resident Evelyne Kluessendorf said.

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Fairfax County would be joining several other areas in northern Virginia such as Alexandria, Arlington and Prince William County that collect a food and beverage tax on ready-to-eat meals at restaurants and drinks — it would not include groceries.

“I don’t want anymore taxes. Honestly, we already pay enough on taxes and I don’t think right now the way the economy is, more taxes are going to help,” said Jose Romero.

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Fairfax County leaders say at the moment two-thirds of the county’s revenue comes from real estate taxes but food and beverage tax could change this. 

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At just 1%, leaders say the meal tax would generate about $35 million in revenue annually, costing diners on average about $50 a year if the rate remains the same. But the county is looking to set the rate anywhere between 4% and 5%.

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County Supervisor Dalia Palchik says one-third of the food and beverage tax will be paid by non-Fairfax County residents who are commuting to or visiting the county. 

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“We rely mostly on our real estate taxes and, you know, living here has become more and more expensive. Unfortunately, we don’t have a lot of options. It’s not something we want to look at but it allows us to diversify, schools, public safety,” Palchik said.

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If this food and beverage ordinance passes, the county will have to hire about 20 people to help collect the tax, costing almost $3 million. The Board of Supervisors are expected to meet next week to set the tax percentage, followed by a public hearing.

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