RICHMOND, VA – A new bill introduced in the Virginia House of Delegates would give all counties and cities the power to levy an additional local sales and use tax—subject to voter approval—to fund school construction and renovation projects.
House Bill 334, sponsored by Delegates Rasoul, Anderson, and Price and co-sponsored in the Senate by Senators Favola and Salim, was prefiled January 11 and formally introduced January 14 for consideration by the House Finance Committee. The measure builds on existing law that currently limits such taxing authority to a small number of qualifying localities.
If enacted, the bill would amend Virginia Code §§58.1-605, 58.1-605.1, and 58.1-606.1 to allow any county or city to impose up to a one percent sales and use tax dedicated solely to capital projects for public schools. These projects would include construction, additions, renovations, infrastructure upgrades, technology improvements, and land acquisition for new facilities.
To implement the tax, a local governing body would first pass a resolution calling for a referendum. Voters in that locality would then decide whether to approve the tax, which could last for up to 20 years or until any bonds or loans for the projects are repaid. The tax would not apply to food purchased for human consumption or to essential personal hygiene products.
All proceeds from the tax would be administered by the Virginia Department of Taxation, deposited into a special fund for each participating locality, and distributed monthly by the state Comptroller. The revenue could be used to finance new school construction, repay existing debt from past projects, or cover costs associated with bond financing.
Counties with incorporated towns that have separate school systems would be required to allocate a proportional share of revenue based on school-age population. The bill also stipulates that localities wishing to extend an expiring school sales tax must hold a new referendum before the previous one expires.
Proponents of the legislation have argued that expanding local taxing authority is critical to addressing the state’s growing backlog of aging and inadequate school facilities, particularly in rural and high-growth areas. Similar bills have passed in past sessions but were limited to select pilot localities.
House Bill 334 would open that opportunity statewide, giving every Virginia community the option to raise dedicated revenue for school construction through a voter-approved sales tax.
The proposal would authorize all Virginia localities to seek voter approval for a one percent sales tax dedicated to school construction and renovation.
