Virginia’s 1% Local Option Sales Tax: A New Path for School Capital Funding
As 47 Virginia localities prepare to vote on a 1% Local Option Sales Tax this November, school divisions and communities face an important question: How can we sustainably fund the schools our students need?
Across the Commonwealth, aging school facilities, deferred maintenance, and rising construction costs continue to challenge local governments. With an estimated $25 billion in school construction and major renovation needs statewide, finding reliable funding for modern, healthy, and inspiring learning environments has never been more important.
In 2026, Virginia expanded the authority for counties and cities to propose an additional 1% local sales tax, subject to voter approval, to support school capital projects. This November, 47 localities will bring that decision directly to their voters.
Understanding the Opportunity
VMDO Principal Wyck Knox, AIA, explores the implications of this legislation in his white paper, The Need for a 1% Local Option Sales Tax for School Capital Projects. Developed as a resource for school superintendents, school boards, local government leaders, and community stakeholders, the paper examines the potential impact of this funding mechanism on Virginia’s public schools.
The white paper highlights several key considerations:
- Dedicated Capital Funding: Revenue can support new school construction, major renovations, and related financing costs, with defined restrictions on how funds may be used.
- Local Decision-Making: Communities determine whether to implement the additional sales tax through voter referendums.
- Financial Planning: Locality-specific projections illustrate potential annual revenue, property tax equivalents, and long-term bonding capacity.
- Lessons from Virginia Communities: Experiences from nine localities that previously adopted the tax offer insight into school capital financing and implementation.
Local Option Sales Tax White Paper
Investing in our schools is about more than replacing aging buildings. It's about creating healthy, inspiring, and resilient learning environments that serve students and communities for generations. The 1% Local Option Sales Tax presents an opportunity for communities to thoughtfully consider how they fund that future.
Advancing the Conversation
For Wyck, this conversation reflects a longstanding commitment to improving educational environments across Virginia. As a Principal at VMDO Architects, he has dedicated his career to advancing K-12 school design, helping communities align educational vision, facility planning, sustainability, and public investment. A leader in Net-Zero Energy design, Wyck was instrumental in delivering Discovery Elementary School in Arlington, Virginia in 2015. Eleven years later, Discovery continues to operate at net-zero and has saved the school district well over $300K in utility costs. His work demonstrates how thoughtful planning and investment can create high-performing, energy-efficient learning environments that benefit students, communities, and future generations.
Wyck will continue this dialogue as moderator of a panel discussion at the Virginia School Boards Association’s Annual Convention on November 19, bringing together educational and local government leaders to reflect on referendum outcomes, lessons learned, and what comes next.
Explore the full white paper for a closer look at the legislation, financial projections, and considerations shaping the future of school capital investment across Virginia.
