Virginia localities collected $119 million over five years from a targeted sales tax for school construction and maintenance, as lawmakers considered expanding the option statewide.
When lawmakers created the tax in 2021, a state survey found that more than half of Virginia’s schools were more than 50 years old, with replacement costs in the billions.
Del. Sam Rasoul, D-Roanoke, and Sen. Jeremy McPike, D-Prince William, proposed allowing all counties and cities to impose an additional local sales and use tax of up to 1% for public school capital projects. The measures were added to the House and Senate budgets and included in the combined budget released Friday.
Virginia localities can levy only taxes authorized by the General Assembly. Currently, nine localities can impose the 1% school tax: Danville, and Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania counties.
According to Virginia Department of Taxation data obtained through a Freedom of Information Act request, Danville collected the most, raising $30 million in three years. In fiscal 2025, revenue varied widely by locality and student enrollment.
Danville generated about $2,171 per student, compared with $478 in Pittsylvania. Most other localities collected about $950 to $1,260 per student. Per-resident contributions ranged from $63 to $276. The per-student figures reflect total revenue divided by enrollment, not the amount paid or spent on any individual student.
Rasoul said $119 million was “a good start to be able to help localities have another tool in their toolbox.” He said, “The commonwealth needs to do more to help with school construction, but one thing we can be doing is at least help some localities help themselves.”
McPike said, “The core of the issue is that we are billions behind, and we still have kids in classrooms with leaky roofs and air conditioning that often breaks.” He added that local referendums give communities another funding option.
The Charlottesville City School Board recently backed expanding the tax, saying it could diversify revenue and reduce pressure on property owners.