WILLIAMSBURG — The Williamsburg Area Restaurant Association said it remains committed to working with the City of Williamsburg to find an alternative to the 1.5% meal tax increase set to be adopted in January as part of the Fiscal 2026 budget.
In May, the proposed budget included a 1.5% increase to the meals tax, a 2% increase to the lodging tax, and the addition of a 10% admissions tax, all of which drew vocal opposition from some members of the community. The council chose to postpone adoption of that ordinance until the Jan. 8, 2026, city council meeting, meaning the tax will take effect starting in January, bringing the total Williamsburg Meal Tax to 6.5%.
The city also included a 2% dealer discount for meals, lodging, and admissions tax payments to allow the city to compensate restaurants, hotels, and tours for the credit card fees that will be incurred.
“[WARA] watched [City Council] all vote ‘yea’ to move forward with that 1.5%, and I think the biggest goal is to bring awareness and hopefully come up with another alternative rather than having to put that on our small businesses and the patrons,” said Rachel Sears, the Executive Director for WARA.
WARA is currently hosting a campaign on its website to bring awareness and provide background on the situation. The association is urging people to respectfully share its concern that adding another burden on local restaurants is not the right answer.
“The big thing would be to give another answer, to be able to offer another solution, because we understand budget shortfalls and we know that [the city] has got to come up with this, but respectively, we just want to hope that they can explore other avenues,” Sears added.
Williamsburg Mayor Douglas Pons highlighted the inclusion of the “dealer discount” as evidence that the council heard WARA’s concerns. He stressed the budget reflects the city’s needs, while remaining business-friendly.
“This budget is designed to support the long-term needs of the City of Williamsburg and invests in our community’s values, including the crucial role that tourism plays in driving our local economy,” said Pons. “During the adoption process, we welcomed public input, actively engaging with various stakeholders, such as the Williamsburg Area Restaurant Association and its members, to ensure the budget reflects the community’s needs and concerns.”
“As a result, the City Council and staff worked together to make revisions, including implementing a ‘dealer discount’ to help restaurant operators offset credit card fees associated with collected taxes,” he continued. “The collaborative effort and careful consideration of community feedback have led to a budget that not only addresses our city’s needs but also demonstrates our commitment to fostering a thriving environment for local businesses, such as restaurants and hotels. We believe that this approach will contribute to the overall success and well-being of Williamsburg and its residents.”
WARA maintains the meal tax will be an added burden, with guests seeing a tax increase at a time when restaurants are also facing rising food costs and staffing issues. It is WARA’s belief the increase would directly affect the way its businesses operate, and potentially the way diners go out and enjoy meals.
“Moving forward, we want to continue to stay as partners and support our community the best way we can,” Sears said, adding WARA has been in contact with the city and found it to be very responsive and communicative. “We just want to bring awareness, and we want to advocate for our members.”
