Will your city have a say in future Horry County road projects? Maybe not, and here’s why

Horry County leaders next year likely will give voters another opportunity to tax themselves as payment for hundreds of millions in ongoing road improvements.

But depending on which method they choose, cities could lose some of their influence in deciding on projects.

For more than 20 years, a 1% tax known as the Road Improvement and Development Effort, or RIDE, has generated billions to construct and improve thoroughfares around the county.

The revenues are generated through sales of goods and services. Under state law, South Carolina counties can impose local option levies up to 2.5% above the statewide 6% sales tax with voter approval.

Horry County’s total sales tax collection rate is currently 8%.

A fourth iteration of RIDE is being developed, but county leaders may have another option: Using a state-approved transportation tax with a much longer lifespan and greater spending flexibility.

Wayne Gray IV, chairman of the RIDE IV committee, said the 1% imposition generates about $125 million annually.

That translates to $900 million over the seven-year collection period for RIDE compared to $4 billion under the state transportation tax, which sunsets after 25 years.

“It’s a heck of a tool in the toolbox of this county, and could make a big, big difference in one of the greatest needs that we have,” County Council member Tyler Servant said.

But here’s the catch: A six-member commission — including one appointee each from Conway, Myrtle Beach and North Myrtle Beach — would be the ones to develop a priority list for funding under RIDE.

All the county council can do is decide whether to put its suggestions on the ballot.

By contrast, the council itself would have oversight on what projects to finance under the state transportation tax.

That’s something Brenda Bethune and Marilyn Hatley, the mayors of Myrtle Beach and North Myrtle Beach respectively, say need to be considered when discussing the future of publicly funded road projects in the region.

Municipalities generate about 60% of the sales tax, with 40% of that coming out of Myrtle Beach.

“We want to make sure that we are fairly represented, and that our projects are considered just as important as any other,” Bethune said. “There are still a lot of questions that need to be answered.”

Myrtle Beach stands to get about $96 million worth of upgrades through RIDE IV.

Hatley told The Sun News she’s had informal talks with the county about a possible switch to the state transportation tax, but shares similar concerns as Bethune.

“We are the major contributors, and we need a voice and seat at the table,” she said.

Some of Horry County’s most expensive needs — including the Southern Evacuation Lifelife and funding to help finish Interstate 73 — could only be realized through the imposition of a statewide transportation tax, county council chairman Johnny Gardner said.

It also would provide more leverage to match state and federal grants.

Since 2005, Berkeley, Charleston, Dorchester and Richland counties have used the transportation tax, according to the S.C. Department of Revenue.

The 8% sales tax cap will remain the same under either RIDE IV or the state transportation tax.

“RIDE’s not going to afford it. But this way, we have a great shot at getting it done,” he said.

Gray said if voters approve either RIDE or a state transportation tax on next November’s ballot, collection would begin in May 2025.