Chesterfield Board Proposes Sales Tax Referendum for Schools
TL;DR: Chesterfield County supervisors are expected to vote on a resolution July 22 that would allow voters to decide whether to impose a 1% sales tax dedicated to school construction and renovation projects.
Quick facts
- Who: Chesterfield County Board of Supervisors
- What: Resolution requesting authority to hold a referendum on a 1% general retail sales tax for school capital projects, paired with a proposed 2-cent residential property tax reduction
- When: July 22, 2026 Board meeting (vote scheduled); referendum would appear on November 2026 general election ballot if approved
- Where: Chesterfield County, Virginia
The story
Virginia's 2026 state budget authorized all cities and counties to hold voter referendums on a 1% local sales tax dedicated exclusively to public school capital projects such as construction, renovation, and major repairs. Revenue from such a tax could not be used for operating expenses.
The Chesterfield County Board of Supervisors scheduled a vote on a resolution July 22 that would authorize county officials to place such a referendum on the November 2026 general election ballot. The resolution is being considered as part of the board's consent agenda, which typically allows items to advance without public discussion unless a supervisor requests otherwise.
The timing is driven by state law requirements: to qualify a referendum for the November general election ballot, county officials must order the referendum at least 81 days before that election. The July 22 board meeting falls within the statutory window required to meet that deadline.
According to reporting on the proposal, the sales tax referendum would be paired with a 2-cent reduction in residential property taxes, representing an effort to shift the county's tax base away from property taxation.
Multiple Virginia counties have pursued similar referendums in July 2026, including Fluvanna, Caroline, Fairfax, and Charlottesville, all moving to place school capital sales tax measures on the November ballot before statutory deadlines expired.
Key dates
- 2026-07-22: Chesterfield County Board of Supervisors meeting; vote on sales tax referendum resolution scheduled
- 2026-11: Potential referendum vote by county voters on 1% sales tax for school capital projects (if board approves July 22)
The case for
A 1% sales tax dedicated to school capital projects would provide substantial new funding for school construction, renovation, and repairs without increasing property taxes. Sales tax spreads the tax burden across all consumers (including non-residents and out-of-county visitors) rather than concentrating it on property owners, and it offers voters direct control over whether to approve the tax increase through referendum.
The case against
A sales tax increase is regressive, placing a proportionally larger burden on lower-income households that spend more of their income on taxable purchases. Voters may reject the referendum, leaving schools' capital needs unfunded. The tax could affect Chesterfield's competitiveness with neighboring jurisdictions for retail sales and could increase costs for residents and businesses, even as property taxes are reduced.
Why it matters: School capital funding directly affects the county's ability to build new schools, repair aging facilities, and expand capacity to serve growing enrollment. The referendum offers voters a choice between property tax and sales tax as the mechanism to fund these projects, and the outcome will shape the county's fiscal strategy and schools' physical infrastructure for years to come.
Places
Development timeline
- 2026-07-01Virginia state budget takes effect: 2026-2028 state budget authorizes all Virginia counties and cities to hold referendums on 1% local sales tax for school capital projects [[source]](https://www.vaco.org/county-connections/time-sensitive-action-item-school-capital-referendum-authority-included-in-state-budget/)
- 2026-07-22Chesterfield Board of Supervisors meeting: Board expected to vote on resolution requesting authority to hold referendum on 1% sales tax for school capital projects, paired with 2-cent property tax reduction [[source]](https://www.chesterfield.gov/1218/Board-of-Supervisors)
- 2026-11November 2026 general election: Potential referendum vote on 1% sales tax for school construction and renovation (if Chesterfield Board approves and if referendum qualifies for ballot)
Related links
- Chesterfield County Board of Supervisors
- Board of Supervisors Agendas and Minutes
- 2026 Meeting Schedule
- Virginia Association of Counties: School Capital Referendum Authority
Read the original at r/ChesterfieldVA →
Sources
- Virginia Association of Counties: Time-Sensitive Action Item - School Capital Referendum Authority Included in State Budget
- Chesterfield County Board of Supervisors
- Chesterfield County 2026 Meeting Schedule
- With state budget passed, Central Va. localities weigh holding sales tax referendum - 29news