Board directs staff to draft admissions-tax ordinance focused on visitor attractions and targets 5% rate

Susan Goodwin briefed the board on the county's new authority to impose an admissions tax effective July 1, 2026, and laid out recommended categories and revenue estimates. Staff recommended including water parks, tours, private sporting events and performances as taxable activities and excluding charitable fundraising, school events and museums. "We are recommending an effective date of 01/01/2027," Goodwin said, so the county can implement software changes and communicate requirements to affected businesses. Staff estimated a 5% rate would generate about $450,000 for a half‑year in FY27 and about $900,000 annually thereafter.

Discussion focused on scope (whether to include smaller tourism businesses), administrative burden for businesses that operate across jurisdictions, and comparisons with nearby localities (Hampton, Newport News, Williamsburg and James City County). Several supervisors favored applying the tax mainly to the major visitor-oriented activities to avoid burdening small operators. One supervisor said he did not "want to bust small businesses" and another favored aligning York County with neighboring James City County for competitiveness. After discussion the board directed staff to prepare an ordinance focused on the primary visitor categories (the staff's "line 1" recommendations) and to proceed with a 5% starting rate, with a public hearing and possible adoption scheduled for Aug. 18.