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VA SB1307

VA SB1307
Sales and use tax, local; additional tax authorized in all counties and cities to support schools.


summary

Introduced
01/09/2025
In Committee
02/10/2025
Crossed Over
02/17/2025
Passed
02/19/2025
Dead
Vetoed
04/02/2025

Introduced Session

2025 Regular Session

Bill Summary

Additional local sales and use tax to support schools; referendum. Authorizes all counties and cities to impose an additional local sales and use tax at a rate not to exceed one percent with the revenue used only for public school capital projects, defined in the bill, if such levy is approved in a voter referendum. The bill removes the requirement that such a tax must have an expiration date on either (i) the date of the repayment of any bonds or loans used for such capital projects or (ii) a date chosen by the governing body. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax. This bill incorporates SB 874.

AI Summary

This bill expands local sales tax authorization for school construction and renovation across all counties and cities in Virginia. Currently, only specific localities (Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville) can levy an additional 1% local sales tax for school capital projects. The bill removes these geographic restrictions, allowing all Virginia counties and cities to impose this tax, subject to voter approval through a referendum. The tax can only be used for public school capital projects, which include constructing new school buildings, renovating existing facilities, upgrading infrastructure, and acquiring school sites. Revenues can also be used for debt service related to these projects. The tax cannot be levied on food or essential personal hygiene products, and any county or city wanting to extend an existing school-related sales tax beyond its original expiration date must hold another referendum. The bill ensures transparency by requiring the referendum ballot to clearly state that the tax revenues will be used solely for public school capital projects.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Senate sustained Governor's veto (on 04/02/2025)

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