Poll: Should Localities Implement or Increase a Meals Tax to Support Affordable Housing?

One of the many problems highlighted by the pandemic is the lack of affordable housing, with even short-term job loss leaving many residents unable to pay their rent. As local governments grapple with how to support more housing, one of the options proposed in Falls Church has been a meals tax increase.

The obvious response, presented even by the consultants in Falls Church proposing the increase, is that local restaurants are already in dire straits and many are struggling to make ends meet. The Falls Church City Council quickly dismissed the idea of implementing a meals tax during the pandemic and favored other options presented, like trying to tap into an Amazon-related affordable housing fund.

While the restaurant industry is slowly recovering, stability could be a year away. But the affordable housing crisis is unlikely to be solved before then, and the question of the meals tax could resurface.

Meals taxes can be controversial even under non-pandemic circumstances. In 2016, Fairfax County voters rejected a referendum to implement a meals tax which would have predominately gone to support schools. In 2018, the City of Alexandria increased the meals tax by 1% to support affordable housing.

Staff photo by Jay Westcott