ARL NOW: Meals tax up, property tax left unchanged as County Board approves $1.7B budget
Published April 10, 2025 at 3:45 PM | Arl Now
Arlington County’s meals tax is increasing but property taxes are staying the same following a unanimous County Board vote last night (Wednesday).
Starting July 1, the county’s meals tax is increasing from 4% to 5% — the first time the rate has gone up since its inception in 1991. The increase, expected to bring in about $13.3 million in the coming fiscal year, comes despite the protests of some local restaurant owners and the Arlington Chamber of Commerce.
Board members had also given themselves the option to increase real estate taxes from $1.033 per $100 assessed valuation to $1.043. However, they steered away from that option during budget discussions, arguing that expected economic challenges this year call for a “more conservative” approach.
Holding real estate taxes steady aligns with County Manager Mark Schwartz’s recommendation in February.
“We continue to invest in what is most important to the most vulnerable Arlingtonians. We are here to deliver the social safety net,” Board Chair Takis Karantonis said during discussion prior to the vote.
Board member JD Spain, Sr., said the decision not to add a higher real estate tax rate atop higher assessments represented the acknowledgment that some in the community are facing perilous economic times.
“We heard you,” said Spain, who had been the only Board member to vote against advertising a higher tax rate to allow for its consideration.
With the $1.033-per-$100 rate now confirmed, the county treasurer’s office will prepare and mail real-estate tax bills to property owners. Payment for half the total will be due in June, with the remainder in the fall.
Board members also raised a host of developer fees. Aimed at recouping the cost of providing services, those increases drew concerns from some in the development community.
Additionally, many parks and recreation fees will rise in an effort to address rising costs.
Fiscal Year 2026 budget timeline (via Arlington County)
The $1.69 billion budget includes elimination of 44 staff positions. More than half are unfilled, and “many” of those in the remaining 21 have been offered new positions, Schwartz said.
Numerous county initiatives will also receive cuts under the new budget.
The budget includes a substantial increase in county reserve funds, meant to act as a buffer in case economic challenges get more severe. It also increases spending on the Department of Human Services, which manages an array of programs that support many of the county’s most vulnerable residents.
Arlington County provided the following breakdown of the budget in a press release today.
Housing: $102M for housing programs to provide direct assistance to stabilize households and improve housing conditions, including $29.3M for Housing Choice Vouchers; $17.7M for Housing Grants; $7M for Permanent Supportive Housing; $7.8M for Shelters for Homeless, Transitional Housing, and Domestic Violence Survivors.
Human Services: $280K for Arlington Food Assistance Center and $105K for Meals on Wheels; $358K for a child care license system; $243K for implementation of the Virginia Quality Birth to Five program; and $350K in one-time funding for the Culpepper Garden Assisted living Facility Subsidy.
Environmental Sustainability: One-time funding in the following efforts: $500K for Climate Action Planning; $240K for additional tree planting; $223K for tree watering and invasive plant management; and $124K for the expansion of the EV fleet.
Public Safety: $2.2M in one-time funding for the second recruit class for Fire; $394K for body worn cameras for Police and Sheriff; $266K for medication assisted treatment and medication for Opioid Use Disorder for inmates; and $232K for contracted security.
Arlington Public Schools: $647.4M, an increase of 3.6% or $22.6M over FY 2025 in ongoing funding, was transferred to Arlington’s school system.
County Board members made the following changes to the budget that County Manager Mark Schwartz proposed.
$1M increase in one-time funding for homeless services contracts that are currently in the Request for Proposal negotiations process. This additional funding, beyond the $2.5M in the proposed budget, will help to close on these contracts.
$308K in ongoing funding to restore two positions proposed for elimination, ISD Construction Plan Review ($170K) and Code Enforcement ($138K).
$227K in one-time funding to the Sheriff’s Office to be used for bonuses to 83 employees who are in roles that are inmate-facing.
$184K to the Commonwealth’s Attorney Office to provide a temporary communication staff ($100K one-time funding) and to convert a conversation of the Commonwealth Attorney III position into a Commonwealth Attorney Deputy ($84K ongoing funding).
$192K to the Public Defender’s Office to support a Re-Entry Coordinator Fellowship ($107K one-time funding) and to increase its non-attorney salary supplement ($85K ongoing funding).
$150K in one-time funding for Food Security Mini Grants, allowing for a third round of grant funding available to local nonprofits to implement select aspects of the County’s Food Security Strategic Plan.
$109K in funding to defer by one year the proposed Developmental Services fee increases for childcare facilities ($6K ongoing funding), live entertainment & food delivery services ($14K ongoing funding), and Adaptive Reuse ($88K one-time funding).
$100K in one-time funding to Arlington Libraries for digital collections.
$87K to restore one-time funding for the Northern Virginia Conservation Trust.
$60K in one-time funding to the County Board Office to support Ranked-Choice Voting Education efforts.
$300K for local childcare subsidies, for a pilot-type program to bridge wait times for families who are eligible for state subsidies but are on the waitlist, especially Arlington’s low-income families who are awaiting support.
“This budget protects core government functions while it prioritizes stable and reliable social safety net services and programs during these uncertain economic times,” Karantonis said in the release. “We are thankful not only to our staff, but to the public for engaging with us on how to create a budget that deeply reflects our community values.”
Adoption of the county government’s budget and establishment of tax rate turns the focus to the School Board, which will continue its budget deliberations until the May 1 scheduled adoption of its Fiscal Year 2026 spending plan. The draft plan anticipates $845 million in spending, a slight increase from the current year.
Because school boards in Virginia do not have independent taxing authority, they rely on local governments for most of their funding. In Arlington’s case, that totals about 80% of total school revenue, determined through a revenue-sharing agreement.