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Bill

HB 1156

Sales and use tax; additional local tax to support schools, referendum.

2026 Regular Session Introduced by Keith Hodges

Virginia bill authorizing localities to impose additional sales/use tax for schools via voter referendum, potentially addressing funding gaps but risking regressive tax impacts and educational inequality.

Referred to Committee on Finance
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Bill Summary · HB 1156

Legislative bill overview

HB 1156 would authorize localities in Virginia to impose an additional local sales and use tax, with revenues dedicated to supporting public schools. The measure would require voter approval through a local referendum before implementation, giving communities direct input on whether to adopt the tax increase.

Why is this important

School funding is a critical policy challenge in Virginia, with significant disparities between wealthy and less affluent districts. This bill offers localities a potential revenue mechanism to supplement state and local funding, though it places the burden of taxation decisions on individual communities rather than establishing uniform state-level solutions.

Potential points of contention

  • Regressive tax burden: Sales taxes disproportionately affect lower-income households, who spend a higher percentage of their income on taxable goods
  • Local inequality: Creates potential for significant funding disparities between communities that approve the tax and those that don't, possibly widening educational disparities
  • Voter fatigue and approval uncertainty: Referendum-dependent funding creates unpredictable revenue streams; communities may reject taxes despite school needs
  • Impact on business competitiveness: Could affect local business investment if neighboring jurisdictions don't adopt similar taxes, creating competitive disadvantages

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

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