(SB1307)

GOVERNOR'S VETO

Pursuant to Article V, Section 6 of the Constitution of Virginia, I veto Senate Bill 1307, which would authorize all counties and cities to levy an additional local sales and use tax to fund public services.

School construction still remains a worthy cause, and Virginia has made significant progress. This proposal could result in a nearly $1.5 billion a year tax increase on Virginians. Some localities would have a combined sales tax rate of eight percent, with no additional offsets, such as reduced income tax or property tax. In addition, the revenues from this tax increase are entirely fungible. While the tax is dedicated to school capital costs, such as information technology, the new source of revenues would indirectly release funding for other purposes, supplanting other revenues without necessarily increasing education spending. My budget amendments include an additional $50 million for school construction grants and loans above the current biennial budget in Chapter 2, bringing the total to $610 million if my amendments to the budget are adopted.

The Commonwealth should pursue a tax policy that unleashes economic development and prioritizes job and wage growth through innovative reforms.

These reforms must allow hardworking Virginians to keep more of their money, not less; any proposal that increases the cost of living and the cost of business is not a policy we should pursue.

Accordingly, I veto this bill.