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What will voters be asked? Proposed ballot question
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Shall the City of Newport News, Virginia be allowed to enact an additional local retail sales tax of up to one percent (1%) to provide revenues that shall be used solely for capital projects for the construction or major renovation of schools serving the City of Newport News? This additional tax would expire on June 30, 2046.
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YES
NO
Authorizes Council to consider levying the tax
Does not provide that authority through this referendum
How did we get here? June 2026 July 14, 2026
VA House passed HB 30, which included language Newport News City to allow localities to Council adopted Resolution 13999impose 1% sales 26, initiating the tax for school referendum construction, renovation
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July 21, 2026 Newport News School Board adopted a resolution in support of the additional 1% sales tax
July 23, 2026 Newport News Circuit Court ordered the question onto the ballot
What to expect from tonight’s conversation ü An educational, informational overview of the 1% School Construction initiative. ü A respectful and constructive discussion environment. ü A Q&A session focused on the topic at the end of the presentation. ü Individual or case-specific concerns addressed after the session. ü A reminder: The decision belongs to Newport News voters.
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Who is here for tonight’s conversation? • Newport News City Council • Newport News School Board • Dr. Terri Best – Newport News School Board Chair • Dr. Adria Strothers – Principal of Denbigh High School • Rusty Fairheart – NNPS Chief Operations Officer
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Referendum at a glance
The decision before Newport News voters on November 3, 2026
PROPOSED
Up to 1% additional local sales tax ALLOWED USE
School construction or major renovation only
CURRENT COMBINED RATE
RATE IF ADOPTED
EST. ANNUAL REVENUE
6%
Up to 7%
$25–$30 million
EXPIRATION
NOT SUBJECT TO NEW 1%
June 30, 2046
Groceries, essential hygiene products, and gas
The referendum asks voters whether to authorize City Council to enact the tax. 7
Approval would not automatically impose it.
What does an additional 1% mean? One additional cent for each dollar of taxable purchases
Current combined sales tax: 6% (4.3% state + 1% local + 0.7% Hampton Roads regional) If an additional 1% were adopted, the combined rate would be 7%.
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What would be subject to the tax? The additional 1% follows Virginia retail sales tax rules, with specified exceptions
Subject to the additional 1%
Not subject to the additional 1%
Most taxable retail purchases made in Newport News
Groceries / food for home consumption
Prepared food / restaurant meals
Essential personal hygiene products Gas
Most online purchases delivered to Newport News addresses 9
Motor vehicles, which are taxed separately
Who pays the sales tax?
Anyone making a taxable purchase in Newport News contributes
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02
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Residents
Commuters
Visitors
Regional shoppers
People who live in Newport News
People who work here and shop here
Tourists and other visitors
Customers from neighboring localities
Unlike real estate and personal property taxes, a sales tax is not assessed specifically on property owners and is not affected by property assessments. 10
Why school construction?
Newport News has significant capital needs across an aging building portfolio
AVERAGE SHOOL BUILDING AGE
ROOFS AT / BEYOND LIFE CYCLE
HVAC AT / BEYOND LIFE CYCLE
55 years
17 schools
13 facilities
Current capital priorities include: • Major renovation of Denbigh High School • Replacement of Dutrow Elementary School • Permanent classrooms to replace standalone portable classrooms • Systems renewal and deferred maintenance across the division 11
Proposed school projects DENBIGH HIGH SCHOOL
$90 M*
DUTROW ELEMENTARY SCHOOL
$42 M*
Current priorities identified through the NNPS Facilities Master Plan and the City Capital Improvement Program * Estimated
STANDALONE CLASSROOM REPLACEMENT 12
SYSTEMS RENEWAL / DEFERRED MAINTENANCE
School facility needs and capital investment The long-range outlook for capital investments identifies $686 million in total school facility needs. $132M
$367M
$132M
$187M
$367M
$187M
FY 2028–2032 CIP Need
Other Identified Facility Needs
Denbigh High School Dutrow Elementary Amounts are estimated and are rounded. Source: NNPS Long Range Facilities Master Plan and FY 2028–2032 CIP need.
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What if the referendum does not pass? School capital needs do not disappear
Projects in the Facilities Master Plan would remain in the capital plan and would be funded, delayed, or scaled based on revenue available from existing sources.
Existing school capital funding
$46 million City capital contribution to schools in the FY 2026–FY 2027 budget
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The proposed sales tax is not expected to replace existing City school funding. The question is whether voters want to authorize an additional, dedicated revenue source for qualifying school construction and major renovation.
How could the revenue be used?
State law and the ballot question restrict the additional revenue
ALLOWED
NOT ALLOWED
ü Construction of schools serving Newport News
ӿ Salaries
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ü Major renovation of schools serving Newport News
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ӿ Operating costs .
ӿ Non-school purposes
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ü Qualifying capital project costs Revenue would be accounted for and tracked separately. 15
What happens after the vote? The referendum is one step in a longer public process
Voters decide Nov. 3, 2026
Council considers ordinance
Collections could begin
If referendum passes
At least 120 days after ordinance
Public capital process School Board priorities + Council appropriations
Safeguards and accountability Projects funded by the tax would go through the same public School Board and City Council approval process as other capital projects, including public hearings on the annual budget and capital plan. 16
Tax ends June 30, 2046
Key dates and where to get more information SEP 18
OCT 23
OCT 31
NOV 3
Early voting begins
Registration deadline 5 PM
Early voting ends
Election Day
Questions about the referendum
Questions about voting
nnva.gov/referendum
Voter Registration and Office of Elections 757-926-VOTE (8683)
The decision belongs to Newport News voters. 17
Questions? 18
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