Penny tax for roads referendum moves closer to November ballot in Spartanburg County

Bob Montgomery, Herald-Journal
Updated ·3 min read

A referendum to let Spartanburg County voters decide whether to pay for road improvements with a new penny sales tax took another step closer to reality.

The recently formed six-member Capital Project Sales Tax Commission met on July 12 and approved the question that will appear on the November ballot.

Members of the commission include Burt Lancaster, Cheryl Lang, Gerod Allison, Chris Bridges, Mac Flood and former Spartanburg Mayor James Talley, who was elected chairman.

Spartanburg County Council must approve three readings and hold a public hearing by Aug. 15 to make the deadline to appear on the November ballot, county spokeswoman Scottie Kay Blackwell said.

County Council on Monday approved the first reading without comment. A special meeting is scheduled at 10 a.m. Wednesday, July 19, to consider a second reading of the ordinance.

Talley said he is "hopeful" voters will approve the measure.

"Some (of the roads) are in pretty bad shape," Talley said. "I'm hopeful the public understands it's not just a tax on the citizens. Everybody that comes through Spartanburg will participate and help pay for the roads."

Talley said the committee has fielded questions from residents and developers wondering how the funds will be used.

If Spartanburg County voters approve: Here are the roads that could be fixed by penny tax

"It will all be used for the top priority roads that need repaving, widening, making them safe – all predicted on the safety of the roads for the citizens," he said.

He said the state Department of Transportation only funds major road and bridge projects across the state, and leaves it up to counties to fix secondary state roads and bridges within their boundaries. It's up to the counties to decide how to fix those roads, he said.

Here's how the ballot question reads:

"Must a special one percent sales and use tax be re-imposed in Spartanburg County, South Carolina for 6 years to raise the amounts specified for the following purposes (listed below):

INSTRUCTIONS TO VOTERS: All qualified electors of the County desiring to vote in favor of reimposing the tax for the stated purposes as outlined above shall vote 'YES,' and all qualified electors opposed to levying the tax shall vote 'NO.'”

Evolution of penny tax for Spartanburg County roads

Some County Council members began raising the idea of a penny tax for roads last year.

According to the S.C. Department of Revenue, the statewide sales tax is a 6% tax imposed on the sale of goods and certain services. Counties may impose an additional one percent 1% local sales tax if voters in that county approve the tax. Generally, all retail sales are subject to the sales tax.

County Public Works Director Travis Brown has estimated a backlog of $500 million in roads that are in need of repair.

Spartanburg County Public Works Director Travis Brown submitted a list of proposed projects to be funded by a penny sales tax if voters approve. Brown says there is a backlog of $500 million in road, bridge, stormwater and intersection improvements needed in the county.
Spartanburg County Public Works Director Travis Brown submitted a list of proposed projects to be funded by a penny sales tax if voters approve. Brown says there is a backlog of $500 million in road, bridge, stormwater and intersection improvements needed in the county.

County Council took the first step in May by creating a sales tax commission. The new tax would be imposed as soon as the current voter-approved 1-cent tax that began in 2018 expires on April 30, 2024. Revenues from that tax are funding a new county courthouse, city police station and a city-county government complex.

If approved, it would keep the total sales tax at 7 cents on items sold in Spartanburg County through 2030, and generate an estimated $478 million for 577 projects ranging from road resurfacing, intersection improvements, road corridor reconstruction, bridge replacements, stormwater improvement and road safety.

Spartanburg city, county leaders support penny sales-tax referendum

County Council and City Council members have voiced support for the referendum, saying it is the least painful way for residents to improve the roads.

Allen Smith, president and CEO of OneSpartanburg, Inc., also announced his support of the penny tax for roads.

"This issue must be addressed, and there are literally two ways to address it – a permanent property tax increase or a six-year, 1% sales tax," Smith said. "Estimates say a permanent doubling of the mills would be necessary to raise the same amount derived from a six-year, 1% sales tax. We do not support a residential or commercial property tax increase."

Smith said roughly 30% of the revenues from the tax will be generated by visitors.

"They use the roads, they should help pay for them," he said.

This article originally appeared on Herald-Journal: Penny tax for roads moves closer to November ballot in Spartanburg