Should Lancaster County charge a sales tax to fix roads? Voters may get to decide

Lancaster County staff got the green light last week to move forward on work that could lead to a new one-cent sales tax for road improvements.

A Lancaster County Council committee, which includes the full slate of council members, met Wednesday and heard options for a new program similar to York County’s one-cent sales tax called Pennies for Progress.

Lancaster County voters would decide by referendum whether to charge up to the 1% sales tax to fund road projects.

“I think there’s interest to move forward with this,” said Council Chair Steve Harper.

County officials discussed a possible referendum for fall 2024. That’s when York County voters are likely to see a fifth Pennies proposal on their ballots. York County voters have approved four, seven-year sales tax plans since 1997.

Reasons for the new tax in Lancaster County follows the same thinking as when York County started what was the first-of-its-kind sales tax in South Carolina: Road work takes money that just isn’t there.

Rapid growth means plenty of road needs

Public works director Jeff Catoe said Lancaster County has about 1,400 miles of public roads. About 900 miles are state roads. The other 500 miles involves county or municipal roads.

“We’ve got tremendous amounts of growth,” Catoe said. “We have an aging and outdated infrastructure, not just county roads but (state and municipal) roads.”

Indian Land in particular is a hotbed for growth and road needs. Population there routinely ranks among the fast-growing in South Carolina, the greater Charlotte region, and Southeast.

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Since 2018 Lancaster County has had about 94 miles of road improvements. Another six miles are expected. There’s money for that from a capital sales tax proviso, and state money from the gas tax. A hand full of other sources have provided about $9 million in one-time funding in one case, and $1.4 million a year from another.

A recent widening study for U.S. 521, or Charlotte Highway, in Indian Land put estimates from $103 million to $143 million to upgrade about nine miles. Add in county and state bridge maintenance and replacement, plus other future road needs like Harrisburg or Henry Harris roads, and those projected costs exceed $150 million.

“Currently there’s not really a long-term plan on that,” Catoe said of Harrisburg Road widening. “And development is popping off the seams in that area.”

Then there are economic development road needs like extending Air Rail Park roads, collector roads, new roads and major widenings. While typical roads can cost $500,000 or more per mile, those large projects are likely to cost $850,000 per mile, Catoe said.

“I’ve seen a lot, but that’s about as high as I’ve ever seen it,” Catoe said.

Also, there are smaller roads in municipalities.

“We’ve got some aging roads that are not on any kind of future resurface, rehabilitation lists right now because we’re short of funding,” Catoe said.

Pedestrian lanes, bike lanes, intersection improvements, roundabouts, traffic calming and more are needed, but largely aren’t happening.

“All these things add up and will be very, very costly,” Catoe said.

New road sales tax

County officials discussed the possible tax for road work in January.

Based on those estimates, a one-cent sales tax in Lancaster County would generate about $15 million per year. The county could set the tax, if approved by voters, up to 1%.

There were figures given for a quarter-, half- and three-quarters percent too.

“It doesn’t have to be the full 1%,” said County Administrator Dennis Marstall.

A $15 million per year revenue stream would get the county closer to paying for road needs, officials say. The money also would help multiply funding. Putting U.S. 521 on a list of coming and at least partly funded projects would signal to other agencies the county is serious about upgrades.

“That would generate matching support from the federal government or state,” Marstall said.

Councilman Brian Carnes is part of the Rock Hill-Fort Mill Area Transportation Study policy committee. That group allocates federal money in urbanized areas of York and Lancaster counties. Carnes pointed to $185 million of state infrastructure bank money for York County interstate projects that he says wouldn’t have happened without funding matches from Pennies for Progress.

It’s not uncommon in York County for Pennies to put down perhaps $30 million on a $70 million project and have the state or federal government pick up the rest, Carnes said.

“Having this money opens the door up for a lot of opportunities that we don’t have right now,” Carnes said.

Councilman Billy Mosteller said not having the sales tax revenue can work against Lancaster County, the same way having one would help. Programs like Pennies for Progress in York County started because there are more state roads in need than there are state plans to fix them.

“The counties that’s got the money to put forward, a big chunk of it, they’re going to move ahead of us,” Mosteller said. “We just keep getting slid down further and further.”

York County Pennies program

Lancaster County has a similar sales tax, for capital projects not roads. Marstall said there have been lessons learned through several campaigns that could smooth the process for a roads tax.

The county would look at a citizens committee, and work with engineering and public works departments for realistic pricing in advance of a potential referendum, Marstall said.

Carnes said the county also can look northwest where York County already has succeeded with with four programs, and another on a similar timeline.

“If you look at York County, their (Pennies for Progress tax money) has always gone for roads...,” Carnes said.

Former York County Council chair Britt Blackwell now heads that county’s citizens committee tasked with developing the roads projects list for a 2024 referendum. That group has met across York County this year. In all those public meetings, Blackwell and other spoke about the vast difference Pennies has made.

Blackwell has called Pennies perhaps the most successful program the county has had. Despite its success, though, committee members say there still are more roads in need than there are ways to pay for them.

It’s the same in Lancaster County.

“For every one road we get fixed there’s probably four or five that can take its place that are in just as bad need, if not worse,” Catoe said.

But officials say the new tax would make a meaningful difference.

“The only option, really, to complete future roadway needs is we’ve got to have some type of dedicated funding stream,” Catoe said.