The Martinsville City Council voted unanimously Tuesday night to add a referendum to November’s ballot that would increase the sales tax by 1% to fund school improvement projects.
The council, taking advantage of a new state law that went into effect July 1, became one of, if not the first, localities in western Virginia to approve such a referendum. City voters will decide if the sales tax should be increased during early voting this fall and on Election Day Nov. 3.
Virginia passed legislation authorizing all cities and counties to put a referendum on their ballots to impose the 1% increase. Previously, only nine localities had been authorized to levy an additional sales tax for school projects, including Henry County, Danville and Pittsylvania County. Henry County voters passed the sales tax referendum in 2020.
“If you’re buying anything in Henry County now, if you shop at Walmart or Lowe’s, Roses, Rural King, if you go to any of those stores, you’re currently paying it for Henry County,” said Martinsville Vice Mayor Kathy Lawson.
The tax increase in Henry County has brought in nearly $28 million in revenue for school projects, according to county documents. In 2025 alone, the tax brought in more than $5.5 million in revenue. County school improvement projects include elevators at two elementary schools, fieldhouses for both high schools and HVAC systems.
The 1% generated revenue is expected to bring in $3.8 million each year for schools in Pittsylvania County, and in Danville, it has helped fund projects at four schools.
In Martinsville, the sales tax spreads the burden to people who do not live in the city, but shop there — and nearly half of the city’s traffic every day are people who are not residents, said councilman Aaron Rawls.
Martinsville has older schools that require upkeep. The newest school building in Martinsville was built nearly 60 years ago. The middle school was originally built in 1939.
School projects include typical service needs like HVAC systems and roofs, said city manager Rob Fincher. Bigger projects include relocating the city’s school bus hub and setting up charging stations for the electric school buses.
Localities have until Aug. 14 to set the sales tax referendums. If Martinsville voters approve the measure, it would be in effect until 2046 before another referendum would be required.
Martinsville school officials could not immediately be reached for comment Wednesday.
