Virginia House Bill HB1099

Virginia 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Retail Sales & Use Tax, additional local; use of revenues for construction or renovation of schools.

Impact

The introduction of this bill represents a significant shift in how localities can fund educational improvements. By allowing local governments to impose this additional sales tax, it grants them greater flexibility in financing necessary capital projects, which are often constrained by limited budgetary provisions. However, this ability is contingent upon local communities voting in favor of the tax through a referendum, reflecting direct democratic engagement in local fiscal decisions.

Details

The effectiveness of the proposed local sales tax will be monitored through specific provisions that require any imposed tax to have a clearly defined expiration. If the projects financed by this tax are covered by bonds, the tax will expire when the bonds are repaid; otherwise, a maximum term of 20 years is stipulated unless lifted by the local governing body. This structure aims to create accountability and ensure that the tax serves its intended purpose without lasting implications beyond its usefulness.

Summary

House Bill 1099 proposes an additional local sales tax to provide funding specifically for capital projects related to the construction or renovation of schools within qualifying localities in Virginia. The bill allows local governing bodies to levy a retail sales tax not to exceed one percent, which will be added to existing state and local sales tax rates. The generated revenue must be allocated solely towards specified school projects, ensuring that funds are effectively directed towards enhancing educational facilities.

Contention

Noteworthy points of contention surrounding HB 1099 include concerns regarding the potential financial burden on residents. Opponents may argue that increasing the sales tax, even by a small percentage, could disproportionately affect low-income households who spend a larger share of their income on taxable goods. Supporters, on the other hand, argue that investing in educational infrastructure is essential for long-term community development and that the benefits to students and the local economy will outweigh the costs.