As the holiday season approaches, a significant issue has emerged in Virginia Beach: the city’s prepared meals tax. Currently, residents pay a combined 12% tax on prepared meals, which includes a 6% meals tax in addition to the existing 6% general sales tax. This policy has drawn bipartisan concern, particularly among local restaurateurs and consumers.
According to J.B. Maas, a co-owner of multiple restaurants in Virginia Beach and a long-time contributor to the Virginia Beach Restaurant Association (VBRA), the meals tax is detrimental to the local hospitality industry and burdens consumers. He argues that this tax structure harms the livelihoods of nearly 100,000 hospitality workers in the community. With Virginia Beach being one of the largest cities in the United States, generating nearly $3 billion in annual tax revenue, the high meals tax appears unjustifiable when compared to other cities.
Tax Rate Comparison and Economic Impact
Virginia Beach’s tax rate on prepared meals is among the highest in the nation. Of the 50 largest cities in the United States, 37 do not impose any separate meals tax. The combined rate of 12% ranks second only to Minneapolis and exceeds taxes in major cities like Los Angeles, New York, and Miami.
Maas points out the regressive nature of the meals tax, highlighting that families purchasing necessary meals pay a tax rate double that of individuals buying luxury items such as electronics or jewelry, which are taxed at only 6%. He emphasizes that for many families, prepared food is not a luxury but a necessity that supports their daily routines.
Furthermore, the average profit margin for full-service restaurants ranges from 3-5%, indicating that the city often collects more in tax from meals than restaurant operators earn from serving them. This situation limits restaurants’ ability to raise wages, invest in improvements, or market their services effectively. The hospitality sector also provides jobs for individuals often overlooked by other industries, including high-school students and part-time workers.
Call for Action and Future Plans
Despite some sympathy expressed by certain city council members towards the concerns of the VBRA, Maas insists that acknowledgment must translate into action. He argues that comparisons to smaller neighboring cities are misleading, given Virginia Beach’s robust tax base. A more accurate comparison, he notes, would be to the Outer Banks, where the meals tax rate stands at just 1%.
As the 2026 elections approach, the VBRA plans to engage the community by providing accessible guides detailing candidates’ positions on the meals tax. These guides will be available both online and in local restaurants, aiming to inform voters about which candidates support reducing or eliminating the meals tax.
The VBRA advocates for an immediate reduction of the meals tax to 3.5%, followed by biannual reductions of 0.5% until the tax is eliminated entirely. Maas emphasizes that the goal is not to seek sympathy but to achieve fairness for the restaurant industry, which plays a vital role in the local economy by creating jobs, supporting suppliers, and contributing to the community’s spirit.
As discussions continue, the future of thousands of working families and small businesses in Virginia Beach may hinge on the outcome of this critical tax policy. The call for change reflects a need for balanced taxation that supports both the community and the businesses that serve it.