Nelson Supervisors vote to proceed with sales tax referendum for school construction

In November, voters in Nelson County will get to decide whether to increase the local sales tax by one percent in order to provide dedicated funding for school construction.

“I think this is a good question to present for the constituents of Nelson,” said East District Supervisor Jesse Rutherford. “This is a time where they can choose whether this is a positive or not. I think we should go ahead and give them the option.”

On July 14, the Board of Supervisors voted 4 to 1 on a petition to the Circuit Court to put the question on the November 3 ballot. North District Supervisor Cameron Lenahan was the lone vote against but made no comment at the meeting.

County Administrator Candy McGarry said the existing sales tax brought in $2.44 million in FY2026 but a provision in the enabling authority states the increase would not apply to sales of food and personal hygiene products.

“The estimated collections with that reduction would be $1,919,006,” McGarry said. “We consulted the Virginia Tourism Corporation. They noted the conservative estimate share paid by visitors of this tax would be about 22 percent.”

That amount is the equivalent of about five cents of revenue from the real property tax rate. McGarry said that could allow the Board to diversify revenue streams.

“It will reduce reliance on property taxes by shifting some of the financial burden to consumer spending,” McGarry said. “Would capture non-resident dollars from out of town visitors, commuters and tourists who contribute to the local tax.”

The accounting firm Davenport Financial estimates the additional revenue could be leveraged into about $24 million of additional debt over 20 years.

McGarry said Nelson County’s schools are aging and funding could be used to support future projects. Maintenance projects currently in the capital budget include the replacement of the heating, cooling and ventilation system at the 29-year-old Rockfish River Elementary School.

Steven Bayne of Nellysford unsuccessfully challenged Central District Supervisor Ernie Reed in the 2025 election. He told the Board of Supervisors during their public comment period that the county should continue pursuit of an admissions tax before seeking to increase the sales tax.

“It was introduced in January, we’re now in July,” Bayne said. “It certainly is slow rolling. You just increased real estate taxes for residents by more than 12 percent. “Now there is focus on additional local sales tax. This while the admissions tax would be far more efficient.”

In an email, McGarry said the admissions tax has been referred to a committee that is weighing its pros and cons.

So far, Fluvanna County Supervisors have moved forward and adopted a resolution to proceed while the Louisa County Board declined to even discuss the matter in public.

Charlottesville City Council will vote on July 20.

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