Prince William County restaurant owners and industry groups welcome Board Chair Deshundra Jefferson’s proposal to fully repeal the meals tax.
Prince William County Board Chair At-Large Deshundra Jefferson proposed fully repealing the county’s meals tax in the Fiscal Year 2027 budget, which begins July 1, 2026. The tax, reduced from 4% to 3% effective January 1, 2026, applies to prepared foods and beverages at restaurants ranging from fast food to fine dining.
Restaurant owners have long criticized the tax as regressive and poorly timed, arriving amid inflation-driven increases in food, labor, and operational costs. Many report customer losses, thinner margins, and disproportionate harm to small, independent, mom-and-pop establishments that depend on loyal local patrons in communities like Woodbridge and Manassas.
Nelson Head, owner of Dixie Bones Barbecue in Woodbridge with more than 35 years in the business, has highlighted the tax’s compounding effect on inflation. He described customer drop-offs of 30% to 35% and warned of survival threats to small restaurants.
Eric Terry, representing the Virginia Restaurant, Lodging & Travel Association, described the meals tax as regressive. He noted it affects all restaurants but impacts smaller local spots more severely due to visible added charges and already narrow profit margins.
The association’s Bull Run Chapter, covering Prince William and nearby areas, has advocated for repeal of the meals tax since its 2022 implementation. Recent statewide analysis by the Virginia Restaurant, Lodging & Travel Association shows fragmented local tax burdens across Virginia, with Northern Virginia areas facing higher combined rates that can drive customers to lower-tax jurisdictions.
Jefferson’s push follows the board’s 2025 vote to reduce the rate, which provided partial relief but did not satisfy industry calls for full elimination. The proposal remains under consideration, requiring additional board votes and budget approval in spring 2026 discussions. The county maintains surpluses that could help offset lost revenue, previously used to fund schools and operations.
If approved, Prince William would become the first Virginia jurisdiction to repeal a meals tax, potentially setting a precedent for Northern Virginia amid restaurant struggles. The issue directly affects residents in Prince William County by potentially lowering meal costs during inflationary times and supporting local dining options.
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> This article was created with AI assistance and reviewed by Potomac Local News editors for accuracy and clarity.
