City Council Regular Meeting
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New Business   Item #: C.
One Percent Sales Tax for School Construction
W. Clarke Whitfield, Jr.
Business Meeting: 06/01/2021
At its May 20, 2021, meeting the School Board of the City of Danville determined that needed construction and improvements to Danville Public Schools’ facilities, physical plants, security, and technology infrastructure were critically overdue and the Board determined that it has insufficient existing capital funding to meet its long-term capital needs for construction, renovation, technology and security upgrades to its facilities. The Board also formally requested that the City Council of the City of Danville, pursuant to Virginia Code § 58.1-605.1, initiate a referendum on the question of whether the City shall levy a one percent (1%) sales tax that will be solely used to finance those bonds for the construction or renovation of schools.
The Virginia General Assembly approved HB 1634, which was signed into law by the Governor on March 19, 2019, and which took effect on July 1, 2019, as Chapter 648 of the 2019 Acts of the General Assembly of the Commonwealth of Virginia. HB 1634 is codified at Virginia Code §58.1-605.1. It provides the City of Danville with the statutory authority to levy a general retail sales tax at a rate not to exceed one percent (1%) to provide revenue solely for capital projects for the construction or renovation of schools in the City of Danville if approved by a majority of the voters in a referendum, held in accordance with Virginia Code §24.2-684 and initiated by a resolution of the Council of the City of Danville.
Staff recommends approval of this resolution to initiate a referendum on the question of whether the City shall levy a one percent (1%) sales tax that will be solely used to finance those bonds for the construction or renovation of schools pursuant to Virginia Code §58.1-605.1 and further Council authorizes and directs the City Attorney and such other appropriate officers of the City of Danville to execute, deliver, and file all such documents, pleadings, petitions, certificates, and instruments, and to take all such further actions as may be necessary, expedient or desirable in connection with, and that are in conformity with the purposes of this resolution to initiate the above referenced referendum to be held on November 2, 2021.
One percent Sales Tax Referendum
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