Virginia voters to decide on 1% sales tax for school construction, NoVa transit funding – WTOP News
This article was reprinted with permission from Virginia Mercury.
Voters in 47 Virginia jurisdictions will weigh a 1% sales tax to fund school construction and modernization costs. In Northern Virginia, the revenue could also support transportation projects.
This comes as leaders face funding challenges for aging school facilities and rising demand to support Metro and other local transit systems.
Before the tax is implemented in each locality, residents must vote in favor of the measure in November. The option was extended to all jurisdictions after this year’s legislative session, following years of debate in the General Assembly about expanding the authority.
“It’s been a long journey, but it’s rewarding to see it finally get across the finish line, and to see that so many folks want to use this to help their communities,” said Jeremy Bennett, director of intergovernmental affairs for the Virginia Association of Counties.
Josette Bulova, policy communications coordinator for the Virginia Municipal League, said 13 of the league’s 39 members have added the question to their respective ballots.
“Having this other continuous funding source is really helpful to everybody,” Bulova said.
About 58% of Virginia’s counties and cities are not seeking any change.
Bennett and Bulova said some localities held back because they didn’t need the authority right now, it didn’t solve their capital or revenue problem, or they preferred to wait for a future year.
“It might be a really good choice for some localities, but it might not be a good fit for others,” Bennett said.
Select registered voters can vote early on the ballot question beginning on Sept. 18 through Oct. 31, or by mail. The deadline for the Nov. 3 election is 5 p.m. on Oct. 23. Returned absentee ballots generally must be postmarked by Election Day and received by the local registrar by noon on the third day after the election.
After a four-year hiatus, the Commission on School and Modernization will meet on Sept. 8. Virginia passed legislation extending the commission, which was set to expire on July 1.
The law now eliminates the expiration date on the commission and it directs the group to meet at least four times each year.
New tool eases tax burdens
For many localities, Bulova said the appeal of the new sales tax is that it creates a dedicated, continuous revenue stream for school construction without levying more real estate taxes on residents.
She pointed out that local governments have “not a lot of ways to raise revenues for schools specifically,” and that most of the burden has traditionally fallen on property owners at a time when the cost of living is already high.
A local sales tax, she said, spreads the cost more broadly — including to visitors and commuters who shop in a community — rather than placing the full weight of school construction on residents’ property tax bills.
Since 2019, interest in finding an alternative revenue source to fund aging school facilities has grown, backed by legislative efforts, facility tours, and a 2021 Virginia Department of Education survey that found more than half of the state’s schools are over 50 years old. Replacement costs are in the billions.
Meanwhile, Northern Virginia leaders are facing rising costs to support Metro and local transit systems. Leaders urged lawmakers to provide additional funding on top of its regular appropriation.
How the new funding tool came to be
Virginia is a “Dillon’s Rule” state, which means local governments can only exercise powers granted by the state legislature. Localities can adjust property tax rates, but they need General Assembly approval to change sales taxes.
In 2019, Halifax County became the first locality to receive authority. Now, the list has grown to nine localities: the city of Danville and the counties of Charlotte, Gloucester, Henry, Mecklenburg, Northampton, Patrick and Pittsylvania.
Lawmakers have attempted to expand the authority, but have either failed in the General Assembly or been vetoed by former Gov. Glenn Youngkin, citing concerns about adding to Virginians’ tax burden and highlighting that millions of dollars were appropriated for school construction.
Schools get modernization grants
On Thursday, the Virginia Board of Education approved $577 million in grants to schools across the commonwealth. The average project cost for award recipients was $16.98 million, according to the VDOE’s fiscal year 2026 School Construction Assistance Program award document.
The city of Virginia Beach had the most expensive project at $100 million to construct a new Princess Anne High School building, expected in 2028. The city of Winchester also received an award for its $86.9 million renovation and expansion project for Garland Quarles Elementary.