Virginia municipalities to hold referendums on school-related sales tax

Approximately 35 percent of municipal governments in Virginia will hold referendums this November regarding a proposed 1% sales and use tax. The Virginia General Assembly approved amendments allowing cities and counties to seek voter approval for this additional tax, with the strict requirement that all generated revenue be used exclusively for school capital projects.

Concerns have been raised regarding the transparency of municipal spending for such projects. Research from the Cicero Institute indicates that public school capital budgets often lack clarity in online postings and that the bidding processes for these projects can be vague. Critics note that funding allocations are frequently approved during school board meetings with minimal public debate or oversight.

One cited instance of mismanagement occurred in Henry County, where a 1% sales tax approved in 2021 for school construction and renovation was reportedly diverted by the board of supervisors to pay debts from other projects in 2022.