VIRGINIA BEACH, Va. — Restaurant owners across the city are pushing back against a tax they say is inflating prices for diners and squeezing already thin profit margins.
What owners are saying
Virginia Beach levies a 6 percent meals tax on restaurant purchases. Owners say that tax, applied on top of Virginia's state and local sales taxes, results in a bill that exceeds 11 percent before tips for many customers.
Mark Stevens, who runs Zero's Subs, told reporters that the tax imposes an additional, often hidden, cost for merchants who accept cards. He noted that credit card processing fees apply to the full charge, including the meals tax, and estimated the cost is a material drag on daily operations.
"But it does cost you — cost me quite a bit of money every time I take a credit card and it includes a taxes cost of me personally 3% that I sent the city because they don't give us a credit," Stevens said.
Organized effort
The Virginia Beach Restaurant Association is organizing a public campaign called "86 the VB Meals Tax". Association leaders say the aim is first to secure a reduction in the city's meals tax and then to build voter attention around the issue as city council candidates vie for seats.
"And basically an opportunity for the public support as our tagline says 86 the VB meals tax," Executive Director Martha Davenport said.
Davenport added that pressures on restaurants mirror what many households are experiencing, and she urged city leaders to revisit the levy.
Goals, timeline and political implications
- Immediate goal: win a decrease in the city meals tax.
- Next phase: expand public support and visibility for the initiative.
- Political phase: make the meals tax a campaign topic in upcoming city council races.
The campaign's organizers say they will encourage residents to contact elected officials and to attend public meetings. They plan to elevate the discussion as candidates seek votes in the current election cycle.
| Tax component | Amount |
|---|---|
| Virginia Beach meals tax | 6% |
| Total on restaurant bill before gratuity | More than 11% |
For restaurant owners already balancing labor, food costs and other overhead, association leaders say the meals tax is another pressure point that ultimately reaches customers through higher menu prices.
How city council members and candidates respond will determine whether the issue moves from campaign rhetoric to policy change. For now, the restaurant association's strategy is straightforward: reduce the tax, rally public support, and make it a factor at the ballot box.
