Higher Meals, Lodging, Admissions Taxes back on City Council's Plate
Williamsburg hospitality industry says move will push visitors and residents to nearby locales
At a meeting later this week, the Williamsburg City Council will once again consider raising both meal and lodging taxes, as well as instituting a new event and attraction admissions tax. Altogether, the city estimates the changes will generate over $2.6 million in new revenue annually. The City Council previously considered imposing the higher taxes last year, but tabled the issue and adopted a $103 million budget for Fiscal Year 2026 without the new taxes. Now, the City Council will reconsider the issue at its regular meeting on Thursday, January 8, 2026 at 2pm in the Stryker Center (412 N. Boundary Street).
Proposed hospitality taxes
The proposed hospitality tax increases are labeled as “courageously leading” on multiple city documents, and at a council work session last year on April 10, Williamsburg City Manager Andrew Trivette claimed that they are needed to correct a structural imbalance in the Capital Improvement Plan, as well as replace exhausted COVID-19 relief funds. Trivette stated that education projects and required reserves creates a funding gap that the new revenue is intended to close. According to city documents, these tax changes would include:
Increased “Prepared Food and Beverage (Meals) Tax”: The tax rate will increase from 5% to 6.5% on the amount paid for meals purchased from food establishments.
The increase is projected to generate approximately $1.2 million in additional recurring revenue.
The meal tax levied by both James City and York counties is 4%.
Increased “Transient Lodging Tax”: The lodging tax rate will increase from 5% to 7% of the total amount paid for accommodations.
The increase is projected to generate approximately $635,000 in additional revenue.
The current lodging tax rate in both James City and York counties is 5%.
New Admissions Tax: A new admissions tax will impose a 10% levy on the first $10.00 of any admissions charge for amusement and entertainment activities.
Some exclusions include public school events and those at the College of William and Mary
This tax is expected to generate at least $793,000 in annual revenue.
Pushback from hospitality industry
These taxes face stiff opposition from many hospitality business owners in the City, who claim it is ill-advised to place further burdens on an industry that is struggling to recover from COVID and also battling rising prices and costs. For example, the public hearing last year on April 10 drew a large crowd from the restaurant industry, including representatives from Second Street Bistro, Cochon on 2nd/Moody’s Kitchen, Against the Grain Restaurant Group, Le Yaca French Restaurant, The Cheese Shop, and Aromas, all of whom voiced opposition to the new taxes.
Noreen Graziano, President of the Williamsburg Area Restaurant Association, also addressed the City Council at the April 10 meeting, noting that the organization has more than 100 local members. “The common goal in this room is increasing visitation. Restaurateurs are repeatedly asked about taxes on a customer’s receipt. In a time of such uncertainty, we understand budget shortfalls but feel [funding for] these shortfalls could come from other sources and should be revisited.” She went on to say that a higher property tax rate might be a better way to raise additional revenue rather than placing the risk and burden only on local businesses.
The comments from the co-owner of a popular local restaurant called Second St. Bistro, Mickey Chohany, echoed the comments of many speakers that evening. “I can tell you what we did last year is nowhere near where we’re at first quarter, if you measure first quarter this year to first quarter last year,” he said in reference to his restaurant’s slowing sales. “How many restaurateurs here say they’re down in sales? So knowing that, why would we add additional burden to the machine, the golden goose that’s laying the egg? Why would we burden ourselves with more stress? You know we as restaurateurs, we tighten our belts and we hunker down and we get more creative. We don’t raise the menu prices.”
At that meeting, City Manager Trivette defended the proposed higher hospitality taxes by noting that they would be borne mostly by visitors instead of the city’s property owners, stating the excise taxes were a “more fair and appropriate way, in my opinion, of accomplishing revenue growth.”
The writer used AI tools and these sources:
Agenda Packet - City of Williamsburg City Council - Thursday, January 8, 2026
Ordinance #25-02 “Levy for transient lodging tax and prepared food and beverage tax”
Williamsburg Area Restaurant Association website
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