VIRGINIA BEACH, Va. — Meals in Virginia Beach are getting a little more expensive. While it may not seem like a big increase, businesses News 3 talked with said it could have a big impact.
One of those businesses is The Stockpot, located just a few blocks from the Virginia Beach oceanfront. Co-owner Amber Kostka smiled as she worked, despite being frustrated about the meal tax increase.
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“Our industry is continuously looked at, not just here in Virginia Beach, but across the state, to kind of make up budgetary shortfalls," said Kostka.
On May 13, Virginia Beach City Council approved the budget for fiscal year 2026 in a 10-1 vote. The budget includes increasing the city’s meals tax from 5.5 percent to six percent starting July 1.
“We net three to five percent on a good year here at our location, so that means at the end of the day, the city’s making more money off the restaurant than we are. So it’s really something to think about in terms of what is a recipe for success. Right now, I don’t feel like we are coming up with that," Kostka said.
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News 3 went to the oceanfront to talk to others about their thoughts on the tax increase.
"Oh, yes. Definitely," tourist Carina Potts responded when asked if a meals tax increase woulds make her consider eating out less. "Because I like to take my daughter to eat out. As a single mom with limited income on VA disability, that would definitely limit our ability to eat out.”
Like Kostka, she wondered why the money can’t come from somewhere else.
“I feel like there’s property taxes, there’s things like that," said Potts.
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Another Virginia Beach restaurant owner News 3 talked with who didn’t want to be identified said they don’t understand why the tax was even considered. They believe it’s bad advertisement for the city.
The city estimates the meals tax overall will bring in $111 million for the city, an increase of more than 14 percent from the current fiscal year.
“We have a lot of benefits that we offer to our staff, like health insurance, a 401K, paid time off. Things you can get at a normal job. My goal is to continue to expand those benefits, but if I can’t get enough business, how can I do that?" said Kostka.
The tax increase is expected to pay for projects to boost tourism and preserve outdoor spaces.
