Here's why Spartanburg city, county and business leaders endorse penny tax for better roads

OneSpartanburg, Inc., has joined elected leaders in supporting a new 1-cent sales tax to pay for much-needed road projects once the current penny tax expires next year.

"The time has come to do something about it, and County Council will be providing voters with the opportunity to act in November," said Allen Smith, president and CEO of OneSpartanburg, Inc.

Smith was among those who led the drive in 2017 for a 1-cent tax to pay for a new county courthouse, city police station and joint city-county complex. Voters that year approved a referendum by a margin of 62% to 38%.

He said those projects are now coming to fruition, which is proof that local governments did what they said they would.

"Look no further than the courthouse," he said. "Upon completion, the building will be paid for with no interest or long-term debt to our citizens or businesses. The process is in place and would be followed to implement road projects as well – with no debt or interest."

$500 million backlog in Spartanburg County road repairs

The county's director of public works, Travis Brown, has estimated a backlog of $500 million in roads that are in need of repair. The average county road rating is just 57 out of 100 (a "poor" rating).

"Your readers don't need me to tell them about the condition of county roads," Smith said. "The situation is rapidly deteriorating as population growth and traffic are at an all-time high."

County Councilman David Britt said many of the roads are in poor condition because in 1976 Home Rule went into effect and counties instead of the state were made responsible for county road maintenance. Combined with the collapse of the textile mills in the 1980s and 1990s, county government didn't have enough money to adequately address roads.

"We have been playing catch-up at a rate we will never achieve without a major influx of money," he said.

Thus, the unpopular $25 road fee was established in 2006, but even those revenues weren't enough to keep up with maintenance as the county continued to grow at a rate of 32% from 254,443 in 2000 to an estimated 335,864 in 2021.

Spartanburg County searches for road funding

County Council eliminated the road fee in 2021, but then agreed to borrow $60 million through 2024 that will be paid back through a taxpayer debt levy of $12 a year.

Even more unpopular than the road fee was the idea of raising property taxes, Britt said.

Either sales tax or property tax Brown: Property tax hike could be on table if 1-cent sales tax increase fails

So when the penny tax idea was proposed for the county courthouse, council members saw the potential for huge revenues with the least pain on county residents, since an estimated 30% to 40% of the sales tax revenues come from out-of-county spenders.

County, city leaders support penny tax for roads

County Councilman Bob Walker has long advocated for a penny sales tax over a property tax increase.

"This will not be a new penny tax, since we are advocating to promote using the current tax with replacement for roads when we end the penny tax for the courthouse," he said.

County Councilwoman Jessica Coker said she became sold on a new penny tax to take effect when the current one expires April 30, 2024. The sales tax would remain at 7 cents.

"Don't want to pay taxes? Don't buy anything," she said. "Those that spend more, pay more, but the percentage stays the same for everyone."

County Councilman Monier Abusaft agreed,

"From my understand, the roads in Spartanburg County are a half a billion dollar issue, and we have no other funding mechanism without the penny," he said. "We would have to double property taxes and spend no money but on roads through the property tax."

Last week, County Council voted to create a six-member commission that will develop a referendum to be placed on the November ballot. Three members will be county-appointed, two from smaller municipalities in the county, and one from the City of Spartanburg.

The city also stands to gain from improved roads, as it did with a new police station and joint city-complex funded by the 2017-approved penny tax, according to City Councilman Jamie Fulmer.

"While I don't take any proposed tax lightly, i think extending the penny tax could be a good way to generate the revenue required to address our existing road infrastructure needs in Spartanburg County and accommodate future growth," he said.

City Councilman Rob Rain said he also supports extending the penny tax.

"I believe that the penny sales tax is a better way to generate this road funding need than increased property taxes," he said. "It is important that we continue to maintain and grow our road infrastructure to support the continued population and development growth of our county."

City Councilwoman Ruth Littlejohn said that while she backs the penny tax, she wants to make sure that results are clearly shown.

The County Council should make available to citizens a status report on the progress of road repairs throughout the county – this would enable citizens to track the status of road repairs to ensure our tax dollars are being utilized appropriately," she said.

This article originally appeared on Herald-Journal: OneSpartanburg endorses penny sales tax for road improvements