Fairfax staff outline meals, admissions, hotel and probate tax options; supervisors press for impact analysis

Phil Hagen, Director of Management and Budget, and staff presented four options that Fairfax County has not yet implemented or could expand: increases to the transient occupancy tax (TOT), a county meals tax, an admissions tax and a county probate tax. Hagen told the committee these options, if implemented at the illustrative rates staff modeled, would generate the equivalent of roughly $0.07 on the real estate tax rate and about $226 million—equal to roughly 4% of General Fund revenue in a hypothetical FY2025 scenario.

Hagen explained that the 2020 state legislation expanded county taxing authority in several areas and that each option carries distinct rules and implementation needs. He said the County currently levies the transient occupancy tax at 4%, which produces about $25.6 million; staff estimated each additional 1% of TOT would generate roughly $6.4 million, noting the next 1% would have to be used for tourism promotion if…