Clemson study reveals penny sales tax will have $573M impact on Spartanburg County roads

If voters approve, a penny sales tax for roads would provide an economic impact of more than a half billion dollars in Spartanburg County, the author of a study announced Wednesday, Oct. 18.

At a OneSpartanburg, Inc. news conference, Clemson University tourism researcher Bob Brookover said $478 million in revenue over six years from a penny tax would support 3,800 jobs, generate $240 million in labor income and $18 million in local government revenues.

The tax, in total, would generate an economic impact of more than $573 million over six years, he said.

Further, he said more than one-third of the revenues — $163 million to $168 million — would be paid for by out-of-county visitors.

"People like me, who's going to spend money in Spartanburg County today, we're going to be picking up a substantial portion of the path to continue to improve your infrastructure, enhance safety and continue the economic growth and vitality this county has been experiencing," Brookover said.

Spartanburg County voters to decide penny tax Nov. 7

On Nov. 7, Spartanburg County voters will decide whether to levy a 1-cent sales tax for roads, starting next April and ending in 2030. It would begin when the current penny tax expires.

It would fund 577 projects, including road resurfacing, stormwater and intersection improvements, bridge repairs and county corridor projects.

The current penny sales tax, passed in 2017 by a margin of 62% to 38%, paid for a new courthouse, city police administration building, emergency operations center, and a new joint city-county government complex that will soon be built — all debt-free.

"Visitors use our roads they ought to pay to fix them," said Allen Smith, president and CEO of OneSpartanburg, Inc. "If we vote yes on Nov. 7, that's exactly what they will do. No other funding solution provides revenue from visitors.

"A property tax increase provides zero revenue from visitors," Smith added. "Massive debt offset by property tax increases — zero revenue from visitors. To leave $163 million to $168 million on the table to fix our roads makes no sense at all. We need to have visitors help us pay."

Smith said Spartanburg County leads the state in traffic facilities this year, with 58 people dying on county roads as of Oct. 10. He added if the referendum passes, 14 of the county's deadliest intersections will be addressed.

Smith said voters should know that unprepared foods, prescription drugs and most medical supplies are not taxed.

Also, he said municipalities in the county that lost funding when the $25 road fee was repealed by County Council two years ago would actually receive more funding from a portion of the penny tax revenues.

OneSpartanburg CEO cites link between road conditions, economic development

Smith said the condition of roads is important in the recruitment of companies looking to locate operations and headquarters.

"The first thing they see when they land at Greenville-Spartanburg International Airport is our roads," he said. "So it's an economic development issue as well because if property taxes go up, economic development and job creation go down."

Avi Lawrence, chairman of the OneSpartanburg, Inc. executive board, said the board on Oct. 9 passed a resolution urging residents to vote yes on Nov. 7 to continue the 1-cent sales tax.

Lawrence said he realizes some residents oppose the tax, but he feels confident the referendum will pass.

Penny tax opponents address Spartanburg County Council

At the Monday, Oct. 16 County Council meeting, opponents and supporters of the penny sales tax referendum traded pitches.

"The penny sales tax is being asked for after some of the highest inflation we've had in years," resident Pam Lyda of Boiling Springs said during public comment. "When will enough be enough? I would like to ask that you kindly fix the roads that we're already taxed to fix."

Former County Councilman Roger Nutt of Moore said road funding has long been inadequate. Moore is running for the state Senate seat of Scott Talley, who is retiring from the Legislature.

He said the former $25 annual road fee only generated $6 million a year for roads, and prior county councils did not want to raise property taxes.

"I'm angry. I hope everybody in this room is angry," Nutt said. "So what if we're mad? It doesn't help anything. The problem doesn't get fixed if we're just mad.

"What fixes this problem is a dedicated stream of money that will do one thing, and one thing only. Fix and maintain our road system," Nutt added. "I encourage everybody to vote yes on the 1 percent sales taxes.

Cheryl Tillotson of Spartanburg was among several who signed up to speak during public comment. She said roads are failing to keep up with a fast-growing county.

"How can we, the people, being taxed, hold our elected officials accountable when the projects are not completed or even started in a timely manner, as always is the case with roads?" she asked council members.

Bob Montgomery covers Spartanburg County politics and growth & development. Reach him via email at bob.montgomery@shj.com.

This article originally appeared on Herald-Journal: Clemson study says penny tax will have $573M impact on Spartanburg roads