VIRGINIA BEACH, Va. — In a 10-1 vote, the Virginia Beach City Council approved its 2025-2026 operating budget on Tuesday. It will introduce some new costs to residents with the intent of funding major projects around the city.
The city council has approved a 0.5% increase of the Virginia Beach meal tax, bringing the city meal tax to 6% (with the Virginia Beach sales tax, the total tax will be 12%). The revenue generated from this tax increase will be allocated to the city projects aimed at boosting tourism and preserving outdoor space throughout the city.
The tax revenue will support initiatives such as the Virginia Beach Trail, the law enforcement training academy, safety improvements on Indian River Road, and enhanced efficiency for city courts.
Watch related coverage: VB resort area beach replenishment ends, focus shifts to Croatan
The approved budget also includes a new annual fee for boat owners. As we previously reported, a boat registration fee was discussed by council members after the initially proposed boat tax was met with strong opposition by many boat owners. City leaders say they opted to implement the fee in place of the boat tax after hearing community feedback.
The initially proposed tax would have costed boat owners $1.50 per $100 of their boat's value. Instead, boat owners will pay an annual registration fee based on the size of their vessel:
- Under 16 feet in length: $20
- Between 16-20 feet in length: $40
- Between 20-40 feet in length: $250
- Over 40 feet in length: $500
Watch previous coverage: Ship sails on Virginia Beach boat tax, boat owners speak on new licensing fee proposal
The approved budget includes 30 new firefighter positions, citing excessive overtime costs and a high turnover rate at VBFD as reasons to bring on more recruits.
However, four branch services coordinator positions at Virginia Beach libraries will be cut as a result of this approved budget.
Councilmember Barbara Henley was the only "no" vote on the budget. She took issue with the timing of the meal tax increase and the elimination of four library positions.
Watch previous coverage: Virginia Beach considers raising restaurant meals tax by half a percent
Henley says she wanted a six-month postponement for the effective date of this tax increase so that it doesn't happen in the middle of tourist season.
"Can you imagine the burden we are placing on our wait staff at these restaurants, who are going to have to hand these people their bill that shows a 12% meal tax, and what kind of pushback they're going to get," Henley said.
The operating budget will go into effect on July 1.
