VIRGINIA BEACH, Va. (WAVY) — Meals are set to become a bit more expensive in Virginia Beach as the city’s meal tax increase is set to go into effect on July 1.
Starting on Tuesday, the total meal tax will now come out to 12%, one of the highest in the country.
The Virginia Beach Restaurant Association has opposed this increase, even starting a petition to try and get it overturned, stating that the increase “doesn’t just hurt restaurants—it impacts every consumer who purchases a prepared meal, from family-owned or national chain restaurants to grocery stores to fast-casual favorites.”
Meanwhile, the City of Virginia Beach has stated that the tax increase is necessary to raise funds for capital projects stating, “The City is experiencing a significant cost increase in capital projects which is largely being driven by inflation and the redirection of these resources and meals tax increase are dedicated to a newly established Major Projects fund.”
One Virginia Beach restaurant owner says the fund needs to be raised elsewhere.
“Look internally, don’t make us your cash cows. Plain and simple,” said Honest Pastures owner Dacia Thorson. “It’s extremely stressful because we’re already working with constrained budgets and now the city is gonna be taking 6%. That’s more than what we’re making. It’s gonna hurt tourism, the small businesses that built this area for the tourism. I just don’t think it’s a good decision.”
One tourist expressed concern for the restaurants, saying they’re apart of what make his vacations special.
“These are things that really make our vacations, you know? We don’t want to go to some massive chain like Applebee’s or whatever,” said tourist Brian Greenspan. “My question is what is the city’s end game? I mean, sure, they’re grabbing a little more money, but where does that leave the heart and soul of the city, the personality of all these businesses? It’s going to have a seriously negative effect on them. There must be an alternative where it’s a win-win for everybody.”
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