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Bill

Bill

HB 334

Additional local sales and use tax to support schools; referendum.

2026 Regular Session Introduced by Bonita Anthony and 17 co-sponsors

HB 334 enables Virginia localities to impose additional sales taxes for school funding subject to voter approval through local referendums.

Referred to Committee on Finance and Appropriations
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Bill Summary · HB 334

Legislative bill overview

HB 334 authorizes Virginia localities to impose an additional local sales and use tax, with the new revenue dedicated to supporting schools. The bill requires voter approval through a referendum before any locality can implement the tax increase.

Why is this important

School funding is a critical issue affecting educational quality and property tax burdens. This bill offers localities an alternative revenue source beyond property taxes, potentially providing more flexible funding mechanisms while giving residents direct control through referendum voting.

Potential points of contention

  • Regressive tax impact: Sales taxes disproportionately burden lower-income residents who spend larger portions of income on taxable goods, unlike property taxes which are wealth-based
  • Economic competitiveness: Local sales tax increases could drive consumer spending to neighboring jurisdictions without similar taxes, potentially harming local retail businesses
  • Implementation variation: Different localities approving different tax rates could create a patchwork of tax burdens across the state, complicating consumer decisions and business planning

Compiled from official sources — confirm details with the bill’s official record.

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