RICHMOND, VA – A bipartisan group of Virginia senators has introduced legislation that would allow every county and city in the Commonwealth to hold a local referendum on raising sales taxes to fund public school construction and renovation projects.
Senate Bill 66, sponsored by Senators Jeremy McPike, Jennifer Boysko, Barbara Favola, Todd Pillion Hackworth, Mamie Locke, Frank Mulchi, and Saddam Salim, expands an existing law that currently limits the additional sales and use tax option to a small list of “qualifying localities.” The proposal would authorize any county or city to levy up to a 1 percent local sales tax, subject to voter approval, with all proceeds dedicated exclusively to public school capital projects.
Under the bill, localities could use the revenue to build or renovate schools, repay bonds or loans, or cover construction-related financing costs. The measure also requires that the new tax automatically expire once the projects are paid off — or within 20 years if the work is not debt-financed. Food for human consumption and essential hygiene products would remain exempt.
If approved in a local referendum, the tax would be added to the existing state and local sales tax rates and collected by the Virginia Department of Taxation. The funds would then be deposited into a separate account in the state treasury designated for each locality, ensuring the revenue is used solely for school facilities.
Supporters argue that the legislation gives communities flexibility to address aging schools without relying entirely on state funding or property tax hikes. Critics have expressed concerns that expanding local sales taxes could burden consumers, particularly in lower-income areas.
The bill comes as dozens of local governments across Virginia face major infrastructure challenges, with many school buildings more than half a century old. Similar measures introduced in recent years have gained bipartisan traction but faced resistance over tax policy concerns.
Key Points: Virginia senators push bill allowing all localities to raise sales tax for school construction through referendum – Richmond
- SB66 would let every county and city in Virginia hold referendums to approve up to a 1% sales tax increase for school construction and renovation
- The revenue would be used exclusively for public school capital projects and expire after repayment or within 20 years
- The proposal broadens existing law limited to select localities and aims to address widespread infrastructure needs in Virginia’s aging schools
