Chesterfield Board proposes property tax cut if 1% sales tax increase for schools passes
The Chesterfield County Board of Supervisors unanimously approved a resolution to put a 1% sales tax increase on November's ballot to raise money for school construction and renovation at its Wednesday meeting.
They simultaneously proposed lowering the county’s real estate and personal property tax rates if the measure passes in November, citing stats that more than a quarter of all sales tax in Chesterfield is paid by people who do not live in the county.
“[With] our growing tourism and visitation business, we believe that around 25 to 30% of this, as it is on a day-to-day basis, would be exported to those that travel to and through Chesterfield,” interim County Administrator Matt Harris said.
Board Chair and Midlothian Supervisor Mark Miller cited that figure as part of the resolution’s appeal. He said Chesterfield parents are concerned about the condition of their children’s school buildings and the potential for overcrowding. These are projects that need to be built, he said. This referendum opens the door to county visitors helping raise the money necessary.
“Here we have an opportunity to have 30% … from folks outside of the county,” Miller said. “And that is a unique opportunity. Because we know, if the referendum does not pass, then the citizens of Chesterfield County will bear 100%.”
The proposal would cut the real estate tax by two cents, to 87 cents per $100 of assessed value (Richmond City taxes at $1.20, Henrico at 83 cents).
Personal property tax would be cut 10 cents, to $3.25 per $100 of assessed value.
The county is the latest Virginia locality to adopt the ballot measure following the General Assembly’s budget kicking in July 1, which allowed localities to increase their sales tax to fund school projects with voter approval.
Eleanor Shaw
The board’s consensus was that, while no one is a fan of increasing taxes, citizens have the right to play a part in deciding where their money should flow.
“Am I thrilled about a new tax? Never am. But do I think that people should have the right to vote, and voice their opinion?” Matoaca Supervisor Kevin Carroll said. “They certainly voice their opinion about everything else, and I would like to hear what their vote would be on this.”
During its Wednesday meeting, Harris gave the board a rundown, including which projects (all of which the county had already had on its radar) would either be fully funded or accelerated:
- A new Dale District elementary school
- A new Old Hundred elementary school
- Renovating Matoaca Middle School
- Rebuilding Midlothian Middle School
- Renovating L.C. Bird High School’s gym
- Expanding Thomas Dale High School’s campus
Harris said portions of the money would also go toward upkeep of schools throughout the county.
The increase is expected to raise $65-70 million per year — slightly more than a billion through the tax’s proposed 20-year lifespan. The sales tax will expire in July 2046. Harris noted that the county has the option to sell bonds and use the 20 years to pay them off.
Some purchases, including groceries, personal care items and other basic hygiene items, will be exempt.
“Those sort of essential day-to-day goods are not part of this proposal,” Harris said.
Harris’ presentation included the following sample ballot question:
“Shall the County of Chesterfield, Virginia be authorized to levy a local general retail sales tax at a rate not to exceed one percent (1%), the revenues of which shall be used solely for capital projects for the construction or renovation of public schools serving the County of Chesterfield, and which shall expire July 22, 2046?”
Contact Eleanor Shaw at eshaw@richmonder.org. She is a Report for America corps member.
