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Nelson County board votes to put 1% school-construction sales tax referendum on November ballot
Summary
County Administrator Candy presented proposed referendum language and revenue estimates; the board voted to initiate the referendum, which would ask voters whether to authorize a dedicated 1% sales tax for new construction and major renovation of schools, expiring 20 years after adoption.
Nelson County’s Board of Supervisors voted to place an optional 1% general retail sales tax dedicated solely to school construction and major renovations on the Nov. 3 ballot after adopting a resolution to initiate a referendum.
County Administrator Candy presented the statutory authority and read the draft ballot question: “Shall Nelson County, Virginia be authorized to levy a general retail sales tax at a rate not to exceed 1% with revenues to be used solely for capital projects for new construction or major renovation of schools serving Nelson County, Virginia, including related bonds and loan financing costs and with the tax expiring on 07/14/2046?” She said the tax would be implemented only after voter approval and cited state code sections listed during her presentation.
Why it matters: The tax would provide a dedicated revenue stream for school capital needs and could reduce pressure on property taxes for those projects, the county said. Staff estimated net annual collections after statutory exclusions at about $1,919,006 and noted a conservative estimate that roughly 22% of revenues would be paid by visitors. Davenport’s analysis, presented by staff, estimated a 20-year additional borrowing capacity of about $24 million at a 5% interest rate using proceeds from the tax.
Legal limits and restrictions: Candy emphasized statutory constraints cited during the presentation: revenue from the tax could not be used to repay indebtedness for public school capital projects that began or were completed before the tax’s imposition. The proposed language includes exclusions for food purchased for human consumption and certain personal-hygiene products, consistent with the statute as read to the board.
Board action and vote: Supervisor [name called on roll] motioned to adopt resolution R2026-58 to initiate the referendum; the board seconded and conducted a roll-call vote. The vote as recorded in the meeting minutes was: Mister Reed—Yes; Mister Parham—Yes; Mister Elkhart—Yes; Mister Lanhee—No; Doctor Lee—Yes. The resolution passed, sending the referendum question to voters.
Next steps: If the referendum appears on the Nov. 3 ballot and voters approve it, the board would adopt an ordinance to enact the tax in late November or December, and the tax would become effective on or about May 1, 2027 (at least 120 days after ordinance adoption). The statute links the 20-year sunset to the date the resolution is adopted; the draft language provided by staff sets the expiration date at July 14, 2046.
The board did not take a position on the question itself, as the resolution only authorizes the referendum process and directs staff to file required paperwork with the clerk and registrar should the board’s resolution be adopted.
