Proposed 1% Sales Tax for Major School Renovations, Modernizations, and Construction

Orange County Public Schools has worked diligently to maintain its schools and make responsible use of the funding available to the division. However, aging facilities and other significant building needs present challenges for students and staff each day.

Frequently Asked Questions

REFERENDUM FACT SHEET

During its July 6, 2026 meeting, the Orange County School Board adopted a resolution supporting the placement of a 1% sales tax referendum on the ballot and recommending that the Orange County Board of Supervisors evaluate the potential benefits and place the referendum before voters at the next general election. The Board of Supervisors subsequently approved placing a proposed 1% local sales and use tax referendum on the November ballot. If approved by voters, all revenue generated by the tax would be dedicated to eligible major school renovations, modernization projects, and construction.

On Tuesday, November 3, Orange County voters will decide whether to authorize the additional tax. The tax will take effect only if it is approved by a majority of voters.

Please browse the answers to frequently asked questions below to learn more about the proposal and what it would mean for our schools and students.

If you have additional questions, please contact Rose Deal at 540-661-4550 or rdeal@ocss-va.org.

BOSResolutionPetitionforReferendum (PDF)

Right now, our most significant facility needs include:

A table listing facilities and infrastructure needs with project details and estimated costs is presented on a yellow and black striped background.

A bank of industrial electrical panels with various switches and conduits is mounted on a wall in a room with concrete floors and shelving in the background.

Unionville Elementary School Electrical Switchgear

Gordon Barbour Elementary School Walkway Connector

A flat, dark rooftop with various vents and an air conditioning unit in the foreground is set against a background of trees, a brick building, and a yellow school bus. — Unionville Elementary School Rooftop

A large industrial compressor sits in the foreground, while a background of pipes, pumps, and metal enclosures fills the room. — Locust Grove Middle School Heating & Cooling Systems

A concrete structure with various mechanical components sits in the foreground, surrounded by green grass, while a dense line of trees forms the background under a cloudy sky. — Locust Grove Primary & Elementary Schools Wastewater System

Large, weathered HVAC units sit on a light-colored rooftop under a bright blue sky with fluffy white clouds, with a line of green trees visible in the background. — HVAC Unit at Orange County High School

Prospect Heights Middle School front of building — Prospect Heights Middle School Window Replacements

OCHS view of windows and doors — Window and Door Replacements at Orange High School

Previously, only nine Virginia communities were allowed to ask voters to approve an additional 1% local sales tax to help pay for school construction and renovation projects.

A new state budget law has changed that. Now, every city and county in Virginia has the option to use this additional 1% sales tax for school construction. However, the tax cannot take effect unless local voters approve it through a referendum.

The Original Nine Communities

Before the law changed, this option was available only to these nine localities:

City of Danville
Charlotte County
Gloucester County
Halifax County
Henry County
Mecklenburg County
Northampton County
Patrick County
Pittsylvania County

In the News

1% Sales Tax Referendum

Local Publications

August 19, 2026 - OCPS Outlines aging facilities needs as sales tax plan heads toward Aug. 31 vote
August 19, 2026 - Op-Ed: Another Tax? Say What??

What is the proposed 1% sales tax?

How did this school construction funding option become available?

An orange silhouette of a balance scale stands against a plain white background.

Earlier this year, the Virginia General Assembly approved legislation allowing counties and cities across the state to seek voter approval of an additional local sales and use tax of up to 1% for eligible school construction and major renovation projects.

The legislation created a new local funding option, but it did not automatically impose a tax. The Orange County Board of Supervisors must first approve placing the question on the ballot, and a majority of voters must then approve the referendum before the tax can take effect.

The Orange County School Board may identify the division’s facility needs and request that the governing body place the question before voters, but the School Board cannot implement the tax on its own.

Why is Orange County Public Schools considering this funding option?

An orange dollar coin is surrounded by two orange arrows forming a circular motion against a white background.

Although the division’s schools have been well-maintained, students and staff face several facility challenges each day. The division’s most significant needs are detailed above.

Orange County Public Schools makes the best use possible of its available funding. However, the division cannot address all its major facility needs through its annual operating budget alone.

What is the total OCPS Budget?

When will voters consider the referendum?

How much money does the Orange County Government give to OCPS to use towards capital improvement projects?

Who makes the final decision?

Can the Orange County School Board impose the tax?

No. The School Board cannot impose the tax or place the referendum on the ballot by itself.

The School Board may identify the division’s facility needs and ask the Board of Supervisors to consider placing the question before voters. The Board of Supervisors must approve a resolution before the referendum can appear on the ballot.

What happens if voters approve the referendum?

Approval would authorize the Orange County Board of Supervisors to implement an additional 1% local sales and use tax. Revenue from the tax would be dedicated to eligible Orange County Public Schools capital projects and associated financing costs.

We would use these funds to address a variety of facility needs, as detailed above.

What happens if voters do not approve the referendum?

How would a 1% local sales tax support school capital improvements?

A 1% local sales tax is projected to generate approximately $5.6 million each year for school capital improvements. For comparison, generating that same amount through local real estate taxes would be equivalent to about $0.07 cents per $100 of assessed value. A local sales tax provides another way to help fund these improvements, with revenue coming from purchases made by both residents and visitors to the community.

Why do we need a 1% sales tax if Virginia already has lottery funding for schools?

Virginia Lottery proceeds are an important source of public education funding, but they do not fully cover the cost of major school construction projects.

Lottery proceeds are distributed among all 131 public school divisions in Virginia and represent only one portion of the state funding provided for public education.

While it is true that the Virginia Lottery money does provide funding for schools, most of that money comes with specific requirements for how it must be spent. Schools do not have the freedom to use all of the lottery funding wherever it is most needed.

Orange County Public School received $3,691,877 in its most recent allocation. That money was designated for several specific purposes, including:

$1,326,097 for instructional expenses and improving student achievement
$676,211 for Special Education services
$596,119 for reducing K–3 class sizes
$554,075 to support at-risk students
$213,958 for the Early Reading Initiative
$153,285 for the State School Breakfast Program
$172,132 for other programs, including improving graduation rates and supporting Career and Technical Education

In addition, much of the funding must be used for state-required initiatives, such as the Virginia Literacy Act, academic tutoring, and efforts to reduce chronic absenteeism.

The important point is that lottery funding is not simply extra money that the school division can spend as it chooses. Lottery funds are dedicated to public education, but for Orange County they are a labeled part of state funding, not extra money added after the school budget is already funded. And they cannot erase the County’s required local support.

What are the benefits of turf athletic fields, regulation size athletic fields, and lights for these athletic fields?

Revenue from the proposed 1% local sales and use tax would provide a dedicated funding source for eligible school capital improvements, including enhancements to athletic facilities for students and the community. This investment in safe, modern, high-quality athletic fields and facilities will support student-athletes, school programs, and community teams. These improvements will create durable, welcoming spaces that expand opportunities for recreation, competition, and community connection, while ensuring these facilities serve the entire community for years to come.

How is a sales tax different from relying on property taxes?

A sales tax is supported by taxable purchases made in the community. This includes purchases made by residents as well as visitors, commuters, and other nonresidents.

As a result, eligible school capital costs could be supported by a broader range of taxable economic activity rather than relying only on local property owners.

How could the revenue be used?

An orange outline of a construction worker in a hard hat and vest holds a rolled-up blueprint in front of a white background.

Per Virginia law, revenue could be used for eligible school capital expenses, including:

Construction of new schools
Major renovations or modernization of existing schools
Eligible bond or loan financing costs associated with those projects

Revenue from the sales tax cannot be used for employee salaries or benefits, instructional materials, routine supplies, general programs, or other day-to-day operating expenses.

Could the sales tax replace existing local funding for schools?

What purchases would be subject to the additional tax?

An orange outline of a shopping cart is in the foreground, with a hand holding a dollar coin above it in the background.

The additional 1% tax would apply to a variety of purchases already subject to Virginia’s sales tax. Examples include clothing, electronics, furniture, restaurant purchases, certain leased or rented items, and some short-term lodging.

The sales tax would not apply to groceries and food purchased for human consumption, nor would it apply to personal hygiene products or perscription medication.

Additionally, basic services and most purely digital products are generally not subject to Virginia sales tax. Because the proposed local tax applies to purchases already subject to the state sales tax, items that are not taxable under state law generally would not be subject to the additional local tax.

What is the difference between "restaurant purchases" and food prepared for "human consumption"?

According to the Virginia Department of Taxation, "Food purchased for human consumption means food for home consumption by humans, as defined under the Food Stamp Act of 1977, 7 U.S.C. § 2012.

The definition includes most staple grocery food items and cold prepared foods packaged for home consumption. Specifically excluded from the definition of food for home consumption are alcoholic beverages, tobacco, and prepared hot foods sold for immediate consumption." Food purchased for "human consumption" would not be subject to the additional 1% sales tax.

"Restaurant purchases" are purchases intended for immediate consumption and are subject to the additional 1% sales tax.

Please refer to Retail Sales and Use Tax, Bulletin Number VTB 99-11 for more information.

Would visitors and nonresidents pay the tax?

An orange outline of a person with a camera around their neck waves goodbye next to a suitcase, with a plain white background.

Yes. Visitors, commuters, and other nonresidents would pay the additional 1% sales tax when making taxable purchases in the community.

This means that people who visit Orange County and spend money at local businesses, restaurants, lodging establishments, and other taxable services would help contribute to eligible school facility projects.

According to a Virginia Tourism Corporation/Tourism Economics study, visitors spent $57.6 million in Orange County in 2024. If all of that spending were subject to the additional 1% sales tax, it would generate approximately $576,000 annually.

For comparison, the FY27 budget estimates $5.68 million in revenue from the existing local option sales tax. Based on these figures, visitor spending could account for roughly 10% of the revenue generated by the additional 1% tax, meaning a meaningful portion of the cost of school facility projects would be supported by people who do not live in Orange County.

How much would the additional sales tax add to a purchase?

The proposed tax would add $1 for every $100 in taxable purchases.

For example:

A $10 taxable purchase would include an additional 10 cents.
A $50 taxable purchase would include an additional 50 cents.
A $100 taxable purchase would include an additional $1.

The additional tax would not apply to purchases that are exempt under the proposal, including food purchased for human consumption and essential personal hygiene products.

Who would collect and administer the tax?

Would the tax remain in place permanently?

Does approval of the referendum automatically approve specific construction contracts?

Where can I cast my ballot on election day?

Can you vote early?

Can I vote absentee in this election?

When is the deadline to register to vote?

An orange clock with radiating lines is next to a calendar with a checkmark on a white background.

In Virginia, the deadline to register to vote is 11 days before the election. For this election, the deadline is Friday, October 23. Voters may register through Election Day and vote using a provisional ballot.

To learn more about registering to vote, visit vote.elections.virginia.gov/VoterInformation. Additional information on registration and other deadlines is available at www.elections.virginia.gov.

What is the exact question that will appear on the ballot?

A hand drops a ballot into a box labeled %22VOTE%22 against a plain white background.

Voters will see the following question on the ballot:

Shall Orange 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 Orange County, Virginia including related bond and loan financing costs, and with the tax expiring on July 14, 2046?

(___) Yes

(___) No