Supervisors approve FY 2026 budget markup; introduces new food and beverage tax

Supervisors approve FY 2026 budget markup; introduces new food and beverage tax
Bryan Hill, County Executive — Fairfax County Government
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The Board of Supervisors has approved the FY 2026 Budget markup, which eliminates a previously proposed increase in the real estate tax rate and instead reduces it by a quarter-cent. The current rate stands at $1.125 per $100 of assessed value. Additionally, a new 4% food and beverage tax will be implemented to diversify the county’s revenue base. This budget will be officially adopted on May 13 and will take effect on July 1, with the food and beverage tax starting on January 1.

“Amid national economic uncertainty, we are staying grounded in transparency and fiscal discipline while investing in what matters most to our residents,” stated Board of Supervisors Chairman Jeff McKay. He emphasized that this budget reflects their commitment to community feedback by restoring key programs and services while diversifying revenue sources to ease property owners’ burdens.

To reduce reliance on real estate taxes, the budget includes a 4% food and beverage tax as well as an increase in the transient occupancy tax from 4% to 6%. Part of this increase is designated for tourism promotion, with Visit Fairfax expected to develop strategies for using these funds.

In response to community input, full funding has been restored for the middle school after-school program for the 2025–26 school year. Fairfax County Public Schools will partner in offering structured enrichment activities after school hours. Staff are also exploring long-term cost-reduction strategies.

Several community-supported programs received maintained or restored funding. These include post-secondary education services for adults with developmental disabilities, funding for Ambulance 416 in Clifton, and support for other emergency units to ensure timely medical services countywide. High school crossing guards will remain funded through FY 2026 while alternatives are explored.

Education continues to receive significant attention in the budget with an advertised transfer maintaining a $118.6 million increase over last year’s allocation to Fairfax County Public Schools. Although this amount is less than requested by the School Board, education remains the largest share of general fund spending.

The board also focused on employee compensation plans and collective bargaining agreements for fire and police personnel while urging agencies to explore efficiencies ahead of FY 2027.

Affordable housing initiatives receive dedicated funds amounting to $42.44 million, with future goals set towards increasing this allocation equivalent to two cents on the real estate tax rate by FY 2027.

Transportation funding benefitted temporarily from state aid covering Virginia’s Metro share through FY 2026 but anticipates challenges without continued support beyond that period.

Investments in parks were partially restored under this budget including mowing and trail maintenance efforts aligned with environmental goals like zero waste initiatives across maintenance areas beginning fiscal year-end reviews extending into FY 2027 investments if necessary adjustments arise accordingly along operational needs improvements recommendations identified during staffing priorities evaluations undertaken recently overall context discussions involving various stakeholders involved ensuring collaborative efforts continue successfully moving forward navigating uncertainties arising global instability alongside federal workforce reductions impacting financial resilience building reserves flexibility addressing potential impacts anticipated economy trends monitored closely authorities tracking communicating effectively developments occur proactively addressing issues emerge appropriately managed timely fashion facilitating progress achieving objectives established throughout 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