2026 SESSION

INTRODUCED

26103681D

HOUSE BILL NO. 1101

Offered January 14, 2026

Prefiled January 14, 2026

A BILL to require the Department of Education to revise the local composite index school funding formula to account for data center revenue.

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Patron—Hodges

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Referred to Committee on Education

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Be it enacted by the General Assembly of Virginia:

1. § 1. The Department of Education, in coordination with the Department of Taxation, shall, no later than December 1, 2026, revise the local composite index school funding formula to include as a factor in the calculation of required local effort any local revenue generated by any data center, as such term is defined in subdivision A 43 of § 58.1-3506 of the Code of Virginia, in the local school division, including real property taxes and business personal property taxes attributable to the operation of any such center, while also ensuring that no local school division that does not have such a data center is disadvantaged by any such revision. The Department of Education shall submit such revised formula to the General Assembly no later than December 1, 2026, for approval pursuant to the general appropriation act enacted during any regular or special session during the 2026 calendar year before utilizing and making calculations according to the revised formula. If the General Assembly grants such approval, the Department of Education shall apply such revised formula effective beginning with the 2028–2030 biennium.