Greene County is one of 47 Virginia localities asking voters this November whether they want to increase the local sales tax by 1% to fund school construction and renovation.

Local governments across the state raced to get this referendum on the ballot after it was made an option in the state budget passed in June. Since Virginia is a “Dillon’s Rule” state, local governments cannot exercise powers unless they’ve been granted by the General Assembly. Nine other localities had previously been given permission to levy this tax.

On the ballot, it will read: 

“Shall Greene County, Virginia be authorized to levy a general retail sales tax at a rate not to exceed one percent, with the revenues to be used solely for capital projects for new construction or major renovation of schools serving Greene County, Virginia, including related bond and loan financing costs, and with the tax expiring on June 30, 2046?”

School construction projects are primarily funded through local taxes, such as real estate or personal property tax instead of state or federal funding. Currently, school construction projects have to compete for funding with other needs across the county. 

But under the new law, revenue from the proposed 1% tax would only go towards school capital improvement projects, like building new schools, renovating existing buildings or adding safety improvements. 

The tax wouldn’t automatically go into effect if it’s approved by voters – it just gives the local government the ability to adopt an ordinance imposing the tax. The Greene County Board of Supervisors would need to vote to approve the tax, which would increase the overall tax collected by the county to 6.3%.

If approved and implemented, the tax is estimated to generate $3.1 million to $3.6 million per year in Greene County, 25% of which is expected to come from nonresidents. 

“The school board is feeling hopeful that this can be an avenue to support the necessary capital projects coming to the county,” said Kelly Greer, member of the Greene County School Board. 

The referendum comes as Greene County Public Schools expect a nearly 50% increase in student enrollment over the next 10 years.

According to an analysis of housing developments coming to Greene County conducted by a consulting firm for the county’s school district, over 1,600 new K-12 students are expected to live in Greene County by 2037. Much of the concentration would be within elementary grades.  

“Because Ruckersville Elementary is already at 95% capacity, absorbing an additional 630 students would push the building to nearly double its physical capacity,” said Greer.   

School officials say they’ll have to build another elementary school within five to seven years to accommodate the population growth. It could cost between $50 million to $65 million. 

“Given new developments planned and under construction, our biggest priority is having the funds to create school space for our growing community,” said Greer.