CITY OF FAIRFAX, VA – The City of Fairfax is considering a resolution to request a Fairfax Circuit Court order for a special election on a 1% retail sales tax increase. Revenue would be dedicated exclusively to public school capital projects, such as school construction, facility expansions, and infrastructure upgrades.
This proposal is based on Virginia Code § 58.1-605.1, which permits localities to seek voter approval for dedicated sales tax increases to fund school capital needs. City officials note this would create a specific revenue stream for school projects rather than expanding general government spending authority.
Under state law, the process requires court approval for a referendum. If granted, a special election would allow voters to decide whether to authorize the tax. This approach places the final decision with residents, rather than the governing body, consistent with requirements for local sales tax increases dedicated to schools.
Proponents in other jurisdictions often cite this as a method to stabilize long-term funding for major capital projects in growing or aging school systems without increasing property taxes or bond reliance. If adopted, the tax would apply to most retail transactions, subject to state exemptions.
The resolution remains in the “tentative” stage and requires approval from city officials before submission to the Circuit Court. If authorized, officials will schedule a special election. Further discussion is expected at upcoming meetings as the city reviews fiscal projections and legal requirements at the Council’s July 28 meeting.