Virginia Democrats Revive Push for New Sales Tax

Virginia Democrats Revive Push for New Local School Construction Sales Tax

SB 66 would let localities ask voters to approve up to a 1% sales tax hike for school building projects, reigniting concerns about higher costs for families.

Published January 21, 2026

Virginia lawmakers are reopening a familiar fight over how cities and counties pay for new school buildings and major renovations—this time with legislation that could give local governments new taxing power if voters sign off.

Sen. Jeremy McPike, D-Prince William, has reintroduced Senate Bill 66, which would allow localities to levy an additional local sales and use tax of up to 1% for public school capital projects, subject to voter approval. Supporters argue the bill is a response to worsening school infrastructure problems, with aging facilities, overcrowding, and delayed maintenance piling up faster than local budgets can keep pace.

But the proposal is likely to face pushback, especially from lawmakers who see new tax authority—even optional—as a slippery slope toward higher costs for working families. Republicans, including outgoing Gov. Glenn Youngkin, have opposed efforts that expand local taxing options, arguing that state and local governments should focus on spending reforms and prioritization instead of routinely reaching for new revenue.

SB 66 arrives during a political reset in Richmond, with Democrats controlling both chambers and the incoming governor’s office. That shift could improve the measure’s chances, particularly if education spending and school construction become part of a broader affordability pitch from Democratic leadership. (RELATED: Virginia Democrats Enter Session With Big Agenda, Four Amendments, and Budget Uncertainty)

🚨Virginia Democrats just introduced a bill allowing EVERY locality to impose a NEW SALES TAX on businesses & working families!

Democrats promised “affordability,” but all they’re doing is rolling out new taxes and costly mandates that will kill jobs. pic.twitter.com/2sNxQRU4CB
— VA Senate GOP (@VASenateGOP) January 12, 2026

Backers argue the structure includes accountability safeguards because it does not impose a statewide mandate. Instead, local elected leaders would have to put the tax question directly to voters and campaign for it in their own communities. Even so, critics may argue that sales taxes fall hardest on lower-income residents and could add pressure to household budgets at a time when many families are already stretched thin.

The legislation also intersects with the budget debate now underway. As lawmakers negotiate a new biennial spending plan, local officials may argue for increased state support rather than new local taxes, while legislators weigh whether to expand local “flexibility” at the cost of potentially higher tax burdens across the Commonwealth.