WILLIAMSBURG — Williamsburg City Council unanimously passed an increased Meal Tax at its January meeting.
The new ordinance increases the transient occupancy tax rate to 7% and the prepared food and beverage tax rate to 6.5%. The ordinance also includes language that expressly provides for the distribution of the additional $2 transient occupancy tax, rather than the existing reference to the Code of Virginia containing the same language.
During discussions over the 2026 fiscal year budget, many opposed a meal tax increase, however, the city said after weighing its options, it was the best way forward to meet the city’s budget demands.
“We’ve had a lot of discussion about this, and as a speaker pointed out, nobody likes a new tax or an increase in tax. But also, back in those discussions, there were several people who reached out and talked about increasing the real estate tax, and that is something that Council considered,” said Vice Mayor W. Pat Dent during the discussion for the unfinished business. “But it was a significant tax increase to make up the revenue that would be generated from these additional taxes.”
“I am very disappointed that this was the outcome, but it’s certainly not a surprise,” said Rachel Sears, the Executive Director of the Williamsburg Area Restaurant Association.
“I have tremendous respect for the city council, and I know that they have a hard job. I just wish that we could have come up with a different outcome, and my hope is that the other jurisdictions, especially James City County, don’t follow suit,” Sears continued.
The new tax increase went into effect immediately after the Jan. 8 meeting, according to the Lodging Meals Tax Ordinance.
The next city council meeting will be held on Feb. 12 at 2 p.m. at the Styker Center. For more information, visit the official website.
