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Orange County School Board approves resolution to seek 1% sales-tax referendum for school construction
Summary
The Orange County School Board voted to send a resolution to the Board of Supervisors asking that a 1% local sales-tax referendum be placed before voters in November to fund school construction and capital improvements; board members discussed revenue estimates, exemptions and sunset language.
The Orange County School Board voted to approve a resolution asking the county Board of Supervisors to place a 1% local sales-tax referendum on the November ballot to fund school construction, renovation and other capital projects.
The action followed a presentation explaining the recent General Assembly change that allows every division in the state to ask local voters to approve the tax for school-related capital needs. Dr. Hronecker told the board that outside estimates indicate a local 1% sales tax could generate about $5,600,000 annually for the district — a sum he said would be roughly equivalent to adding about seven cents to every $100 of assessed value if that revenue were raised through property tax instead.
Board members asked for clarification about what purchases the tax would apply to. The Chair said a quick check of the code shows the local sales tax would not be levied on food purchased for human consumption or essential personal hygiene products. Dr. Hronecker said the revenue would be placed in an account earmarked specifically for school construction, upgrades, renovation and capital projects and could be structured with a sunset provision tied to project completion.
Board members also asked whether ongoing projects, such as the district's CTE project, would be eligible; Dr. Hronecker said the county administrator was checking whether previously issued bonds or already-started projects would be grandfathered or whether the measure would apply only to projects after an effective date.
A committee member moved to approve the sales-tax resolution as presented; another committee member seconded, and the Chair announced the motion carried. Board members said they would ask that at least one member attend the Board of Supervisors meeting next Tuesday, July 14, to present and support the resolution.
The item will next be considered by the Board of Supervisors, which must act in time to place the referendum on the November ballot. The board did not specify final vote tallies on the sales-tax motion beyond the Chair’s announcement that the motion carried.
