For years a bipartisan coalition at the Virginia legislature has sought to empower localities to offer a new sales tax to cover the cost of local school construction. Governor Glenn Youngkin repeatedly vetoed the effort, but those involved have promised to bring it back and Governor Elect Abigail Spanberger is on board.
In his veto of a local tax option to cover school costs Governor Glenn Youngkin said it could increase Virginians tax bill by nearly $1.5 billion a year. But Democratic Roanoke Delegate Sam Rasoul who said he’d bring the effort back in 2026.
“The localities get to choose and it’s by referendum," Rasoul told Radio IQ. "So, the people of the locality get to choose if they want this 1% for school construction.”
In the 2025 legislative session a similar effort had bipartisan support; a version was even patroned by Bland County Republican Senator Travis Hackworth.
And rural localities are already asking for it. Here’s Peyton Nibblett with the city of Martinsville at their a city council meeting in mid-November.
“We would support legislation granting the authority to levy a 1 cent sales tax, that would be a penny tax, that would be dedicated exclusively to school construction as well as capital improvements,” Nibblett said in archived city council footage. The request is part of a larger series of requests for the legislature ahead of the next session.
Eight localities got similar taxing authority back in 2020. All of the local referendums eventually held succeeded; in conservative and rural Gloucester County, residents approved it 62% to 38%.
But Senate Minority Leader Ryan McDougle cast doubt on the idea of increasing taxes.
“Hundreds of millions from casino revenue are going for school construction," McDougle told Radio IQ. "Hard working Virginians should not have to pay additional taxes.”
As for support from other Republican Senators, Hackworth did not return requests for comment.
Sales taxes are also considered regressive, they increase costs for everyone, something a progressive like Delegate Rasoul might not normally agree with. But he said it was about local parity.
“Sales taxes are regressive,” he said, noting he would vote in favor if and when it came up in a referendum in Roanoke. “Localities should be able to choose whether they want to do this or not.”
In an email, a spokesperson for governor-elect Abigail Spanberger said she’d sign such legislation in line with promises made on the campaign trail. And with majorities in both legislative chambers, it’ll likely reach her desk.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
