Virginia school construction tax could raise $1.27 billion

A study by the Virginia Municipal League indicates that a proposed sales tax for school construction could generate more than $1.27 billion over three years if approved by 47 localities in an upcoming November referendum.

Based on data from the Virginia Department of Taxation, revenue projections vary significantly by locality. For instance, Giles County is projected to raise approximately $2.3 million annually through the 2028 fiscal year, while Franklin County could raise at least $7.2 million. Conversely, the city of Buena Vista is expected to raise around $500,000 per year.

Despite these potential gains, the revenue would not fully address the estimated $25 billion required to modernize school facilities across the state, according to a 2021 report. This marks the first year that all Virginia counties and cities have the authority to consider implementing a 1% sales and use tax specifically for school construction projects.