Heather Bell
RADFORD – The Virginia General Assembly made changes to the state code this past session to allow for localities to enact a one percent sales tax to raise funds for school construction.
Radford voters will decide this November if the City of Radford can enact such a tax on behalf of Radford City Public Schools.
Previously, only eight localities in Virginia were allowed to levy the tax, which does not tax groceries or personal hygiene products, but does include other purchased goods.
Earlier this year, the General Assembly “approved amendments to Sections 58.1-605.1 and 58.1-606.1 to allow all Virginia cities and counties to put forth a referendum to their voters to give the locality the power to impose an additional one percent sales and use tax in the locality, provided the revenues from the additional tax may only be used for school capital projects,” writes F. Jesse Bausch, a public finance attorney with Sands Anderson, in an online essay.
Previously, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick and Pittsylvania counties and the City of Danville were authorized to impose the tax.
“The statute provides that the tax revenues can be used for new construction and major renovation for schools,” Bausch wrote. “An Attorney General opinion under the previous version of the statute opined that the revenues could not be used for existing debt service, only for debt or project costs related to new projects. Revenue can be used to pay debt service on bonds issued to finance school projects or can be applied directly to pay for project costs. State law limits the tax to 20 years from the date the [locality] adopts the resolution requesting the referendum.”
Add a comma: ‘…over the next 10 years, according to a recently completed facility study.’
