Virginia school tax raised $119M, expansion advances

·

·

1–2 minutes

Summary

Virginia localities raised $119 million for school projects, as lawmakers weighed letting all communities put the tax to voters.

Why this matters

The proposal would give more Virginia localities the option to ask voters to approve a sales tax for school construction and maintenance. Its fate depended on the state budget timeline and could affect whether referendums appear on November ballots.

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.

  • N.C. rate hike request cut, AG says costs still high

    The company’s overall request would total 9.3%, down from 14.3%, with 5.6% slated for 2027 and 3.7% for 2028.

    Full story +

  • South Carolina counties pause data center approvals

    County officials had hoped the Legislature would pass statewide rules, but two Senate proposals did not reach the floor this session.

    Full story +

  • Jury awards $250,000 in wrongful arrest suit

    A South Carolina jury awarded Aalayah Owens $250,000 after her civil suit over a 2024 arrest she said was a case of mistaken identity.

    Full story +

  • SC Lowcountry heat forecast, tips to stay safe, cut bills

    The Beaufort County Sheriff’s Office issued a heat advisory.

    Full story +

  • Study: Solar uses little prime farmland in NC

    NC ranked fifth nationally for installed solar capacity. About 10% of the state’s electricity came from solar energy, enough to power more than 1 million homes.

    Full story +

  • N.C. boosts boating patrols for July 4 weekend

    Under state law, it is illegal to operate a recreational vessel with a blood alcohol concentration of 0.08 or higher, or while appreciably impaired by alcohol, drugs, or other impairing substances.

    Full story +

  • Venezuelans search ruins as quake toll rises

    Authorities said the number of injured had risen to more than 3,300 by midday Friday and that 243 people had been rescued. The death toll was expected to increase.

    Full story +

  • Trump threatens 100% tariffs over digital taxes

    Trump said the tariff would override previously negotiated trade deals and would apply to any country that moved forward with a digital services tax.

    Full story +

  • D.C. settles suit over protester detained near Guard

    The lawsuit alleged two First Amendment violations, one Fourth Amendment violation, and two claims under District of Columbia law for false arrest or false imprisonment and battery.

    Full story +

  • U.S. strikes Iran after drone hit ship in Hormuz

    The U.N.’s International Maritime Organization paused a planned evacuation of more than 11,000 sailors stranded in the shipping lane after Thursday’s attack.

    Full story +