Bill > HB1156

This bill expands the ability for all localities in Virginia to impose an additional local sales and use tax of up to one percent, with the revenue exclusively dedicated to public school capital projects, which include the construction and major renovation of school buildings and facilities. Previously, only a specific list of counties and the City of Danville were authorized to levy such a tax. A key change is the removal of the requirement that this tax must have an expiration date tied to the repayment of bonds or loans for capital projects or a date chosen by the local government; instead, the tax can now be ongoing if approved by voters. For the tax to be implemented, it must first be approved by voters in a local referendum, and the ballot question will clearly state that the revenue is for public school capital projects. The bill also clarifies that revenues can be used for debt service on these projects and for repaying existing indebtedness for school capital projects that began or were completed before the tax was imposed.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB1156