Arlington Chamber urges county board to reject meals tax increase amid rising restaurant costs

The Arlington County Board convened on March 27, 2025, to discuss the proposed budget for Fiscal Year 2026, focusing particularly on the tax rate and its implications for local businesses and residents. The meeting featured multiple speakers, including representatives from the restaurant industry and the Arlington Chamber of Commerce, who expressed concerns regarding the proposed increase in the meals tax.

The first speaker highlighted the significant impact of rising costs of living, noting that Arlington rents have surged by 12% year-over-year. This increase, coupled with a shift towards remote work, has altered consumer spending habits, leading to reduced dining out as residents seek more affordable options. The speaker reported a staggering 30.5% decline in dine-in sales over the past two years, which translates to a substantial loss in meals tax revenue for the county. They urged the board to consider strategies that would support local restaurants and encourage patrons to return.

Following this, John Musso, representing the Arlington Chamber of Commerce, reiterated the need for the board to reject the proposed meals tax increase. He emphasized that many restaurants are already operating on thin margins, and further tax burdens could deter local dining, ultimately resulting in minimal revenue gains for the county. Musso also called for adjustments to certain fees in the proposed development fee schedule, advocating for a budget that fosters investment and growth in Arlington's economy.

Another restaurant general manager echoed these sentiments, aligning with previous speakers in opposing the meals tax increase. He underscored the challenges faced by local establishments, including labor shortages and rising operational costs, and urged the board to consider the broader economic implications of their decisions.

The meeting concluded with a clear message from multiple stakeholders: the proposed tax increase could hinder the recovery of the restaurant industry and negatively affect Arlington's economic vibrancy. The board was encouraged to adopt a budget that supports local businesses and fosters a thriving community.