VA HB1167

Requires the Virginia Department of Education to exclude certain tax-exempt real property when calculating the composite index of local ability-to-pay for school funding, effective July 1, 2026

Targets property exempted under § 58.1-3219.5 or § 58.1-3219.9, which cover tax exemptions for disabled veterans and surviving spouses of military members killed in action

Maintains the overall statewide funding split of 45 percent local share and 55 percent state share after excluding the exempt property values

Would potentially increase state funding to localities with significant amounts of tax-exempt military-related property by lowering their calculated ability-to-pay