York County: Sales tax of up to 1% for school construction

Official plain English statement

As part of the 2026 state budget, the General Assembly authorized all Virginia counties and cities to seek voter approval to enact an additional local general retail sales tax of up to one percent (1%). All revenue raised from any tax can be used solely for new school construction and major school renovation projects, including bond and loan financing costs related to those projects. The tax may only be imposed if York County’s voters approve the referendum and the Board of Supervisors passes an ordinance to that effect. Previously only a few localities had the power to request a referendum for this purpose. If approved, the York County Board of Supervisors will be authorized to enact the additional sales tax on behalf of the County. The referendum does not require the Board to enact the tax, but rather allows the Board to do so. The Board will be required to hold a public hearing prior to enacting the ordinance imposing the tax. If enacted, state law restricts the use of these revenues to eligible school capital projects and related bond and loan financing costs. The funds could not be used for school operating expenses or other County purposes. By law, the moneys collected under any tax imposed pursuant this authority is paid into the state treasury into a special fund created for the County. Any additional tax imposed would not apply to groceries, essential personal hygiene products, prescriptions or over the counter medicines, utilities, cars, trailers, boats, or aircraft. Exemptions also apply to certain agricultural, commercial and industrial items. Based on 2025 sales, an additional 1% tax would have generated approximately $11.7 million in 2025. Any tax levied under this authority would expire on or before July 21, 2046.