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Virginians May Be Asked to Vote for Higher Taxes
Do you want higher taxes? Local politicians may soon give many Virginia residents a chance to answer that question for themselves.
Earlier this year, state Sen. L. Louise Lucas introduced a bill that would have allowed all local governments to impose an additional 1% sales tax on top of existing levies. At the time the bill was drafted, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania counties and the City of Danville enjoyed that authority. Lucas’ bill died in committee, but she didn’t earn her job as president pro tempore of the Virginia Senate and reputation as the state’s most powerful elected official by giving up easily.
Lucas has other ways to get her ideas into circulation. In this case, language that will allow localities to increase the local sales tax on most purchases—with the new revenue earmarked to fund school projects—was added to the two-year state budget presented to lawmakers just days before the July 1 fiscal year began.
They passed the measure and Gov. Abigail Spanberger signed it, which of course needed to happen to prevent a state government shutdown. And so, your tax rate may get a boost, depending on where you live and how your neighbors vote.
But there is one more step. Before any county board or city council can impose the new tax rate, it must get permission from voters via a resolution. Many localities in the state are taking steps to draft tax increase language, perhaps in time to get it on the November ballot. If not, it may be included in 2027, when the entire General Assembly will be up for election.
Some places have acted quickly. Fluvanna County’s board of supervisors agreed last week to schedule a referendum. “For Fluvanna County, the primary lever is the real estate tax,” Board Chair Tony O’Brien told 29News. “So, the burden, 92 or 93%, falls on the homeowners. This is an opportunity to spread that out a little bit more.”
Fluvanna already introduced a 4% meals tax last year. In nearby Louisa, the county board of supervisors declined to consider a sales tax referendum and reportedly will not do so this year. Richmond also moved quickly. The Richmond City Council already introduced a resolution to create the ballot initiative, and lawmakers could approve the language by the end of July. City residents already pay a 6% combined state and local sales tax and a 7.5% meals tax that was added in 2018 to fund schools.
Elsewhere, “Arlington is very seriously considering it,” County Board Member Maureen Coffey told FFXnow. However, she expects politicians will need to do more preparation before they can move ahead. “There are so many conversations that have to occur both internally and politically,” she added.
In Northern Virginia, money raised from such a tax may also be used for transportation projects. That could make this an issue in Fairfax County, where all 10 of the supervisors must stand for reelection in 2027. They may be reluctant to run alongside ballot language that would allow another tax increase. Fairfax imposed a meals tax last year, but only after the General Assembly allowed the county to do so without first seeking explicit approval from voters.
This time, at least voters will have a voice in whether their tax rates increase.
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