Report Shows Rising Local Taxes Squeezing Virginia Restaurants, Hotels

A new report from the Virginia Restaurant, Lodging & Travel Association finds local taxes on meals and hotel stays are climbing across Virginia, adding pressure on already strained hospitality businesses.
The group reviewed meals, hotel occupancy, and sales taxes in all 133 localities and found about 43% raised or added at least one of those taxes over the past decade. The association says nearly one-third of Virginia localities now exceed the state’s 5.3% sales tax, calling restaurants and hotels convenient targets for revenue. Bottom line: what diners and travelers pay can change sharply from one county to the next, driven largely by local tax policy.