JAMES CITY COUNTY – The James City County Board of Supervisors approved a 2027 budget Tuesday night that adds a new admissions tax, delays a meals tax increase and lowers the county’s real estate tax rate.
The $413 million budget was passed following lengthy discussion over balancing tax increases with maintaining county services and public safety staffing. The budget includes a three-cent reduction in the real estate tax rate and a two-cent real estate tax credit for property owners.
As part of the budget package, supervisors approved increasing the meals tax from 4% to 6%, though the implementation was delayed to Jan. 1, 2027. County officials said the delay would give businesses time to prepare for the change while also providing temporary relief to taxpayers.
The board also approved a new 6% admissions tax that will apply to amusement and theme parks and movie theaters beginning Jan. 1, 2027.
County staff estimated the admissions tax will generate about $5 million annually, with the revenue designated for debt service and capital projects. Officials said the tax would diversify the county’s tax base and reduce pressure on the general fund.
An admissions tax is levied on tickets or entry fees for entertainment venues and events. James City County, along with York County, lacked the authority to impose the tax until the Virginia General Assembly approved legislation allowing it earlier this year. Both localities had been barred from imposing the tax, as they receive an additional sales tax tied to tourism promotion.
“The General Assembly has provided us with this admissions tax for the first time and that we do have an opportunity to provide some additional revenue that would not be derived from real estate tax rates,” said Board of Supervisors Chairman John McGlennon.
Other board members argued the additional revenue would help offset rising operational costs while shifting some of the tax burden away from residential property owners and onto visitors.
“We have offered a high-quality community, a safe community and frankly when we have a lot of people move here that costs money,” said Supervisor Ruth Larson.
Not all board members supported the meals tax increase. Supervisor Tracy Wainwright, the lone dissenting vote, raised concerns about the impact on restaurant workers.
“Our servers work hard, they basically only make tips and I think there’s going to be a ripple effect … that I’m not sure has been taken into consideration,” she said.
The budget passed by a 4-1 vote and will be effective July 1.
