Election 2016: Meals Tax Rejected in Fairfax County

FAIRFAX COUNTY, VA — The meals tax proposed by Fairfax County was rejected by voters on Tuesday. The proposal would have added four cents on the dollar to every bill at restaurants and other establishments selling food that's not prepackaged.

With 98 percent of the precincts reporting, there were 231,920 "no" votes to 184,007 "yes" votes.

The county said the tax would add $96 million in extra tax revenue, most going to public schools, per year while critics said it unfairly burdens business owners and their employees.

The Board of Supervisors had hoped to dedicate the revenues to two purposes, which were specified in the ballot question. First, 70 percent of the net revenues would be dedicated to Fairfax County Public Schools. Second, 30 percent of the net revenues would be dedicated to County services, capital improvements and property tax relief.

The question also states that the Board of Supervisors’ reason for seeking authority to impose a meals tax is to reduce the County’s dependence on real estate taxes. Currently, nearly 65 percent of Fairfax County’s General Fund budget relies upon real estate taxes. State law limits what the County can tax and how it may otherwise raise revenue. Almost 90 percent of Fairfax County non-property tax revenues are capped, limited, or controlled by the state.

A number of area jurisdictions already impose a meals tax, including Arlington County, the cities of Alexandria, Falls Church, and Fairfax, and the towns of Herndon and Vienna. Based upon state law, the County’s meals tax would not apply in the towns of Clifton, Herndon or Vienna.

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