Richmond and Chesterfield tie tax cuts to new sales tax vote

Catch up quick: The state Legislature granted localities the new taxing power — which doesn't apply to groceries, prescription drugs or personal hygiene products — this year.

• RPS superintendent Jason Kamras called it a much-needed lifeline for the district, noting leaky roofs, faulty HVAC systems, crumbling facades and asbestos in some schools.
• "None of these things show our students how much we care about them," Kamras added.

The latest: This week, Chesterfield's Board of Supervisors became the first in the region to approve asking the circuit court to place the question on the November ballot.

• Richmond council members have signaled they'll follow Monday.
• Both localities estimate roughly 30% of the new sales tax revenue would come from visitors rather than local taxpayers.

Here's what the measures would mean for each locality if they pass.

🌃 Richmond

• The payoff: About $48 million annually, eventually supporting up to $850 million in school construction through 2034, Avula told reporters.
• Where the money will go: A new long-term facilities plan will determine project priorities, Kamras said.
• The potential tax cuts: A 1-point reduction in the city's meals tax (from 7.5% to 6.5%) and a 1-cent cut to the real estate tax rate.

🛣️ Chesterfield

• The payoff: Between $65 million and $70 million per year, reports BizSense.

• Where the money will go: Six projects have already been identified, including replacing Old Hundred Elementary, building a new Dale District elementary, renovating Matoaca and Midlothian middle schools and more.
• The potential tax cuts: A 2-cent reduction in the real estate tax rate and a 10-cent cut to the personal property tax.

The intrigue: Richmond raised its meals tax from 6% to 7.5% in 2018 to help pay for school construction.

• If the new tax is approved, Avula said, meals tax revenue would keep paying debt on existing school projects while the new tax funds future ones.
• Even with the meals tax cut, the new sales tax would keep the combined tax on restaurant meals at 13.5%.

What we're watching: Whether tax cuts elsewhere are enough to persuade voters to pay an extra 1% on most purchases.