# Virginia municipal school construction tax referendums > Live situation record from CLSTR: https://clstr.news/situations/virginia-municipal-school-construction-tax-referendums > Updated: 2026-09-09T08:12:00.000Z. Sources: 6. Developments: 2. Following amendments by the Virginia General Assembly, approximately 35 percent of Virginia municipalities are preparing to hold referendums this November regarding a proposed 1% sales and use tax. Under the new authority, all revenue generated from such taxes must be used exclusively for school capital projects. While the tax could potentially generate more than $1.27 billion over three years if approved by 47 localities, projections vary by municipality. For example, Giles County may raise approximately $2.3 million annually, whereas Franklin County could see at least $7.2 million. However, these funds would not fully meet the estimated $25 billion needed for statewide school facility modernization. Concerns have been raised regarding the transparency and oversight of these funds. Research from the Cicero Institute suggests that public school capital budgets often lack clarity and that bidding processes can be vague. Critics have pointed to past mismanagement, such as in Henry County, where a 1% sales tax approved in 2021 was reportedly diverted in 2022 to pay debts from other projects. ## Timeline ### 2026-09-09: Virginia school construction tax could raise $1.27 billion A proposed sales tax in Virginia could generate $1.27 billion over three years for school construction if approved by 47 localities in November. 2 sources. https://clstr.news/cluster/virginia-school-construction-tax-could-raise-127-billion ### 2026-09-02: Virginia municipalities to hold referendums on school-related sales tax Virginia municipalities will hold November referendums on a proposed 1% sales tax dedicated to school capital projects, amid concerns over spending transparency and fund allocation. 3 sources. https://clstr.news/cluster/virginia-municipalities-to-hold-referendums-on-school-related-sales-tax --- Cite as: Virginia municipal school construction tax referendums. CLSTR, https://clstr.news/situations/virginia-municipal-school-construction-tax-referendums