Fairfax County will soon join most other Northern Virginia jurisdictions in having a meals tax.
The Board of Supervisors officially adopted a budget on Tuesday (May 13) that will decrease the local property tax rate by a quarter-cent to $1.1225 per $100 of assessed value, though homeowners will still see their annual tax bill for 2025 rise by an average of $499, due to higher home assessments.
A lower real estate tax rate, smaller transfer than school leaders sought and imposition of a meals tax are all part of Fairfax County’s $5.7 billion fiscal year 2026 budget slated for formal adoption next week.
“Our residents are worried” as they “prepare for the impact” of the Trump administration’s downsizing of the federal government and its related economic fallout, Board of Supervisors Chairman Jeff McKay said at a budget markup session today (Tuesday).
Consideration of a meals tax has gained most of the attention this budget cycle, but Fairfax County supervisors also are looking at increasing the transient-occupancy tax paid on hotel stays.
If adopted next month, the increase from 4% to 6% on stays of less than 30 days will raise an additional $13 million in the coming fiscal year, said Phil Hagen, director of the county’s Department of Management and Budget.
Opponents outnumbered supporters as the public weighed in Tuesday (April 22) on the imposition of a countywide meals tax.
Adding a meals tax on top of the sales tax for restaurant meals and prepared foods would “really be a burden” both to the industry and “economically exhausted consumers,” Jim Rafferty of the Glory Days Grill restaurant chain told Fairfax County supervisors during a public hearing.
In the future, a share of tax revenue generated by the Tysons Transportation Service District could go to transportation-related projects shepherded by the Tysons Community Alliance (TCA), including ones on private property.
The district’s advisory board voted last Wednesday (April 9) to recommend that $1 million be allocated to the TCA for fiscal year 2026 to support its work to close gaps in the Tysons transportation network, reduce traffic from single-occupant vehicles, and boost public awareness and engagement.
Fairfax County is officially seeking public input on a potential meals tax.
The Board of Supervisors voted today (March 18) to advertise a public hearing on amending the county code to impose a meals tax of up to 4%, starting as soon as next January. The board will also advertise a base real estate tax rate of $1.14 per $100, up from the current $1.125, as recommended by County Executive Bryan Hill.
The Town of Vienna plans to stick with its current real estate tax rate, breaking from the hikes floated by many of its neighbors in Northern Virginia, including Fairfax County, the Town of Herndon and Fairfax City.
However, rising property values will still result in higher bills for most residents, while enabling the town to fund employee pay raises, an initial allocation toward a potential swimming pool and fitness center, and other priorities, according to the proposed fiscal year 2026 budget released on March 5 by Vienna Town Manager Mercury Payton.
A Great Falls businessman has been ordered to serve prison time and pay restitution for stealing nearly $4.5 million from the IRS and his customers.
A federal judge sentenced Rick Tariq Rahim, 56, on Friday (March 14) to six years and six months in prison after he pleaded guilty last year to wire fraud and intentionally failing to report and pay taxes, the U.S. Attorney’s Office for the Eastern District of Virginia announced.
Fairfax County will need to hire more than 20 new staff and spend about $2.8 million a year to administer a countywide meals tax, if one is authorized in the coming months.
Even with the additional expenses, overall revenue would far exceed the costs of administering the program, which would tax food and drinks served by restaurants and other food service establishments, staff told the Fairfax County Board of Supervisors at a budget policy committee meeting yesterday (Tuesday).
The Town of Herndon is joining Fairfax County, Fairfax City and other Northern Virginia localities in contemplating real estate and meals tax rate increases to address growing expenses and prepare for potentially tough economic times ahead.
The proposed fiscal year 2026 budget released yesterday (Monday) by interim town manager Christopher Martino bumps up the property tax rate by 1 cent — from 26 cents to 27 cents per $100 of assessed value — and the tax rate on prepared food and beverages from 3.75% to 4%.
