Meals Tax Decrease Formalized, Prince William Co. Supervisors Debate The Tax's Value

PRINCE WILLIAM COUNTY, VA — Prince William County is preparing to lower its meals tax rate, and it could host its first Restaurant Week.

On Tuesday, the Prince William Board of County Supervisors took formal code action to lower the meals tax rate from 4 percent to 3 percent, effective Jan. 1, 2026. That's a step the supervisors approved as part of the latest county budget. The board voted 5-2, with Supervisor Victor Angry (D-Neabsco) and Supervisor Margaret Angela Franklin (D-Woodbridge) opposed.

The 4 percent meals tax on prepared food and beverages was first implemented on July 1, 2022. Many other localities around Northern Virginia have meals taxes, including towns within Prince William County. Fairfax County is starting its own 4 percent meals tax in 2026, while Loudoun County does not have a meals tax.

Supervisor Kenny Boddye (D-Occoquan) shared support for the lower rate, making it competitive in the region. However, he has concerns about the county needing to keep diversifying revenue to address reliance on real estate tax revenue.

"I see the meals tax as something we continue to need overall as a way to help promote the commercial tax base as well as draw on revenue from outsiders, people that are visiting Prince William County," said Boddye.

Supervisor Yesli Vega (R-Coles) said lowering the rate is a "good step" because it has a burden on small mom-and-pop businesses. Vega said some businesses were not initially aware they had to collect the tax when it was first implemented and received a large bill. The county has responded by offering a payment plan, the supervisor said.

"In my opinion, we are going in the right direction," said Vega, who wants to ultimately repeal the meals tax. "This is a regressive tax. It has a negative impact on the local businesses."

Supervisor Tom Gordy (R-Brentsville) added that inflation has caused the price of food to jump since the meals tax was first implemented. He called it a "tax on inflation" that gets passed on to customers.

"While our gross receipts for our restaurants continues to go up, it's driven by inflationary pressures not because business is growing but because expenses are growing," said Gordy. "The more that we tax those expenses and those inputs for the restaurants, the more regressive this becomes."

Noting the struggles of businesses, Chair Deshundra Jefferson (D-at large) issued a directive to explore a Prince William County Restaurant Week.

"Our businesses are hurting. Our restaurants are hurting, and we have a lot of great places to eat in Prince William County and I really want to showcase that," said Jefferson.

The chair's directive asks the county executive and staff to develop a Prince William County Restaurant Week to promote the county's diverse eatery offerings. The plan would include a recommendation for timing, recruitment of restaurants, advertising and staff support, as well as estimated costs.