Fairfax County board considers proposed food tax despite $240 million surplus

WJLA

By Nick Minock

FAIRFAX, Va. (7News) — If Fairfax County has a $240 million surplus, why is Fairfax County Board Chair Jeff McKay and the board of supervisors considering implementing a food tax in the county?

It’s a question several people asked this week as McKay and the Fairfax County Board of Supervisors decided to spend the county’s multi-million surplus on projects instead of giving tax relief to families.

This year, Fairfax County’s surplus is so large that if the Fairfax County Board of Supervisors wanted to, they could send a $200 check to every man, woman and child in the county.

McKay and county supervisors, who appear to be interested in implementing a food tax, said they want to diversify the county’s revenue and give more money to schools.

“To try to provide adequate funding for FCPS which is the driver of our economy,” McKay said last week. “That $586.7 million hole that the state has created that is money we should be getting based on their own analysis has to be filled by something if we want to have the school system we want to have.”

“Sixty-six percent of our revenues is from the real estate tax. That’s too high,” Fairfax County Supervisor Walter Alcorn said last week. “It is just too high. And as hard as it is we have to find ways to diversify our tax structure locally.”

Fairfax County Supervisor Pat Herrity is the only supervisor on the board who has publicly said he will not support passing a food tax.

Right now, McKay and the Fairfax County Board of Supervisors are considering implementing an up to 6% food tax on all prepared meals. This would be included on your bill if you dine out in Fairfax County. If you buy fast food, you’d pay the tax. And if you buy a hot dog at a gas station or hit a grocery store buffet, you’d pay the tax.

The Commonwealth of Virginia already has a sales tax.

On Tuesday, the Fairfax County Board of Supervisors heard from residents who asked them to reconsider implementing a food tax, especially when the county has a $240 million surplus.

“Dining out is already more expensive than it has ever been. Running a restaurant is more expensive, right, than it’s ever been,” said Che Ruddell-Tabisola with the Restaurant Association of Metropolitan Washington. “Now, is not the time to further drive up those prices with a meal tax.”

One restaurant owner who was born and raised in Fairfax County and employs more than 1,000 employees asked the board not to pass a food tax.

“It affects my employees,” said Fouad Qreitem, the owner of Paisanos. “It affects my team members who live a lot of times paycheck to paycheck. I would ask you to just mindfully reconsider and try to find the money elsewhere.”

One Fairfax County resident told the board a food tax would lead to more food insecurity in the county and impact low-income residents the most.

“I help contribute to the distribution of 2,500 free meals a day, six days a week,” said Timmy Norton with Great American Restaurants. “I can tell you, from the bottom of my heart, that the need for these meals are great, and a meal tax will increase the food insecurity in Fairfax County. Also, restaurant employees will be dramatically affected negatively by a meals tax.”

“And guys, we’re supposed to be a team here, where it’s not you versus us,” Norton told the Fairfax County Board of Supervisors Tuesday. “We’re supposed to work together. And honestly, I don’t think you guys are representing us at all. You don’t hear constituents talking to you.”

The county is spending some of its surplus on public school construction, parks and recreation, bicycle and pedestrian transportation improvements, IT project support, and a fire and rescue department pharmacy. You can see the full list of projects here.

“Every turn that we have, taxes seem to go up, and it seems to be less affordable for me to live in this county,” Bredan Rife, a Reston resident and restaurant manager told the Fairfax County Board of Supervisors Tuesday. “As it pertains to the meals tax that the board is looking to implement in the Fiscal Year 2025 or further in the future, it’s just going to make it more and more unaffordable for all of our residents to live in this. The people of Fairfax have voted, and they’ve adamantly shot down this meals tax.”

Fairfax County residents have rejected food tax proposals twice at the ballot box, but McKay and Fairfax County Supervisors appear to want to move forward with a food tax despite what voters think.

Several jurisdictions in Virginia have food taxes, also known as a “meal tax.”

In Alexandria, the food tax generated $31.6 million for the city in fiscal year 2024, and in Falls Church, their food tax generated $5.6 million for the city.

The food tax in Prince William County generated $44.9 million in fiscal year 2024.

And in 2023, the Washington, D.C. Meals Tax generated $553.6 million for the city.