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Fairfax City’s council voted unanimously on July 14 to ask a circuit court to place a sales tax referendum on the November 3 ballot, seeking voter authorization for a retail sales tax increase of up to 1%.

The city estimates the tax could generate up to $13.5 million in annual revenue. Officials have presented school construction and long-term maintenance as the primary intended uses, drawing on voter-approved school bonds from 2024.

The new authority became available after Virginia’s General Assembly approved it in the late June 2026 state budget, opening the door for eligible localities to pursue local sales taxes.

“We have been very clear about what our intention was for this,” said Mayor Catherine Read, describing the city’s commitment to directing revenue toward education.

However, the legal authority to implement the tax also permits spending on public transportation—a broader scope than school-only spending. The distinction matters: the referendum would authorize the tax, but a separate City Council vote would be required to actually impose it.

The Fairfax City School Board adopted a resolution supporting the referendum on July 1 and asked the council to move forward. That request drove the July 14 vote.

Council members expressed varying levels of commitment to the school-first approach. Councilmember Thomas Peterson suggested that sales-tax proceeds could help repay the school bonds, potentially reducing the need to rely on real estate tax increases for that purpose. He emphasized the need to “be very intentional” about the spending plan.

Councilmember Stacy Hall said she would consider proposing a council resolution that would limit revenue use to schools for the first 10 years—a self-imposed restriction beyond what the referendum authority requires.

Several other Virginia jurisdictions have moved to place similar questions on ballots. Frederick, Fluvanna, Nelson, and Middlesex counties and the City of Martinsville have approved referendums, while Washington County delayed its effort until December.

Regional politics also played a role: Read noted that Fairfax County representatives favored broader regional coordination and did not intend to pursue a referendum in 2026. Support for such a measure on the Fairfax County Board of Supervisors remained uncertain, though the Fairfax County School Board expressed openness to the possibility.