The General Assembly has approved language expanding authority for all Virginia counties and cities to impose an additional 1 percent local option sales and use tax for school capital projects, subject to voter approval through a local referendum. This authority has been a longstanding VACo legislative priority and provides localities with a significant new tool to address school construction and renovation needs. This language also includes separate authority for localities within Planning District 8 to impose a voter-approved 1 percent local option sales and use tax for public transportation purposes, along with language addressing certain local funding contributions to the Washington Metropolitan Area Transit Authority (WMATA).
Counties interested in pursuing a referendum in November 2026 should immediately review the timeline and procedural requirements contained in the budget language, as statutory deadlines for placing a measure on the ballot may require action in the coming weeks. VACo will provide additional guidance as implementation details become available. Please note that this provision remains subject to final budget action by Governor Spanberger.
VACo thanks its members, advocacy partners, and the General Assembly for their multi-year efforts to advance this longstanding VACo legislative priority.
VACo Contact: Jeremy R. Bennett