Avula backs possible Richmond vote on 1% sales tax for schools
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A provision in the Senate's budget proposal would let local voters decide whether to add a 1% sales tax to pay for school construction.
Why it matters: If it survives stalled budget talks, Mayor Avula has signaled he'd back a referendum in Richmond.
State of play: Avula's support for the new taxing power, confirmed to Axios by the mayor's office, comes as Richmond is proposing putting more money toward urgent school repairs, while leaving less available in future budgets.
- RPS and School Board officials have said that front-loading tackles immediate needs — like HVAC and roof replacements — but risks delaying costly projects down the line, reports the Richmonder.
- The sales tax option would potentially give them another funding source.
Between the lines: In Virginia, localities can't raise sales taxes on their own under Dillon's Rule, which requires state approval.
- Only nine mostly rural localities currently have permission to impose the 1% tax for school projects.
By the numbers: A 1% sales tax in Richmond could generate about $45 million annually for school construction, city financial advisers said in a February presentation.
- It could also unlock about $450 million in borrowing and "free up" other city funds for needs like replacing the dilapidated John Marshall Courthouse.
The other side: Some Republican lawmakers have long opposed the tax, saying it shifts the burden onto residents.
- And Richmonders already pay some of the region's highest taxes (especially with home assessments and car and meals taxes).
What we're watching: What happens to the sales tax provision when state lawmakers reconvene April 23 to finalize the budget.