This fall, voters in Madison and Orange counties will have the opportunity to decide if a portion of sales tax should be allocated to school construction and renovation.
A new law that went into effect this month allows Virginia localities to place a referendum on the November ballot that, if approved, would increase sales tax by 1% to fund school projects. Previously, only nine localities had the authority to levy the additional sales tax.
In Madison County, the 1% sales tax could yield approximately $1.2 million. In Orange County, as much as $5 million could be generated annually.
“That would be a real game changer for the school system,” Orange County Administrator Glenda Paul said. “They haven’t had that kind of capital support in the budget for years.”
She said the tax also offers a unique opportunity to raise revenue without having to increase the burden on homeowners. The real estate tax is the county’s main source of revenue.
Board of supervisors chairman and District 5 supervisor Bryan Nicol said the real estate tax would need to be increased five or six cents to yield the same amount of revenue as the 1% sales tax.
“We have aging schools that need work,” he said. “That’s not going away. Some schools are busting at the seams, too. The voters get to decide. Is this important to the county; let’s talk about what it means. We could bring facilities that not only modernize our schools, but give great learning environments for students and their teachers.”
Madison County Supervisor Jim Jewett agreed the 1% could be a great thing for localities, stating he hopes it may lead state legislators to give localities more opportunities for local control in the future. He also said the 1% allows the county to capture greater revenue from those traveling and making purchases along U.S. 29.
It’s important to note the 1% is not a replacement of the 1% localities currently receive back from the state sales tax. It would be an addition to the sales tax consumers pay. It also is not applicable to food purchased for human consumption or personal hygiene items.
Both Madison and Orange supervisors approved a resolution petitioning the circuit court for the referendum to be added to their respective November ballots.
