Fairfax City Voters Could Decide On 1% Sales Tax In November

FAIRFAX CITY, VA — Fairfax City voters could decide this fall whether to authorize a local sales tax of up to 1 percent to help pay for school construction, renovations and public transportation.

The Fairfax City Council voted unanimously Tuesday night to ask the Fairfax Circuit Court to order a Nov. 3 special election on the proposed tax. The council’s action does not impose the tax. Even if voters approve the referendum, the council would have to take additional action before implementing it.

The referendum follows a change to Virginia law that took effect July 1. The General Assembly amended the law to allow localities in Northern Virginia’s Planning District 8, including Fairfax City, to ask voters for authority to levy the additional sales tax.

Council Amends Referendum Language

Before adopting the resolution, council members discussed whether the proposed ballot language clearly explained the possible uses of the revenue.

Councilmember Stacy Hall proposed simplifying the question to ask whether the tax should support school construction or renovations, public transportation or both. City Attorney Brian Lubkeman recommended keeping language that closely follows the state law.

“Is yours probably better English and easier to follow? Yes, but we do not recommend deviating from the recommended question,” Lubkeman told Hall.

Assistant City Manager and Chief Financial Officer J.C. Martinez said the city would also prepare a plain-language explanation for voters. City officials may distribute that explanation through postcards, public discussions and other communications before the election.

Under the proposed ballot question, voters would be asked whether the city should be authorized to levy a general retail sales tax of no more than 1 percent. Revenue could be used only for capital projects involving new school construction or renovations, public transportation purposes or both. Eligible costs would include bond and loan financing expenses.

The referendum question was written broadly because state law permits revenue to support both schools and public transportation. However, Mayor Catherine Read said city officials have consistently presented the tax as a way to pay for school renovations.

“We have been very clear about what our intention was for this,” Read said.

Tax Could Generate $13.5 Million Annually

City staff estimates that a 1 percent sales tax would generate approximately $13.5 million annually. The amount would depend on economic activity and whether the council ultimately implements the tax.

Unlike the real estate tax, the sales tax would be paid by residents and people visiting or working in the city when they make taxable purchases, Martinez said.

The city has considered seeking the additional sales tax since early 2024 as a way to finance school capital projects. In November 2024, nearly 70 percent of city voters supported a $220 million school bond referendum. The council later approved funding for elementary school renovations and a Fairfax High School roof replacement, including a $22 million appropriation in the fiscal 2027 budget.

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Martinez said the projected sales tax revenue would nearly cover the annual debt payments on the $220 million school bond. Without the sales tax, the city previously estimated it could need the equivalent of a 20- to 21-cent increase in the real estate tax rate to finance the projects.

Councilmember Tom Peterson said he believed school renovations and construction should remain the city’s priority if voters authorize the tax. He also called for deliberate planning before any revenue is directed toward transportation.

Lubkeman said the state law does not require the city to spend the sales tax revenue on Metro or any other specific transit service. However, a Planning District 8 locality that enacts the tax and later fails to meet its Metro funding obligations could lose the authority to use the revenue.

Councilmember Stacey Hardy-Chandler moved to adopt the referendum resolution, and Peterson seconded the motion. Councilmembers Billy Bates, Amos, Hall, Hardy-Chandler, Rachel McQuillen and Peterson voted in favor.

The Fairfax Circuit Court must order the special election before the question can appear on the Nov. 3 ballot.