Voters in Greenville County have recently turned down a proposed capital project sales tax aimed at improving the area’s crumbling roads. The referendum was defeated with 126,293 votes against (51.5 percent) and 118,948 votes in favor (48.5 percent).
This additional 1-percent sales tax was expected to generate over $1 billion over eight years, funding more than 1,500 road projects. It would have applied to most purchases, excluding groceries, prescription medications, and gasoline.
Supporters of the tax highlighted it as the only viable solution to address the significant issues plaguing Greenville County’s transportation system. County officials reported that around 60 percent of roads in the region are in fair to poor condition, with the cost to repave them estimated at $2 billion.
In June, the County Council decided to place the tax on the ballot, following a property tax increase that had taken place about a year earlier — the first in nearly 30 years. Opposition to the sales tax was strong in the months leading up to the election, with both current and incoming council members campaigning against it.
With the tax proposal failing, questions remain about how the county will close the gap in infrastructure funding, which could reach into the billions. Currently, the county generates about $12 million annually for road maintenance, with significant local projects lacking state funding for the foreseeable future.
Those against the penny sales tax have suggested alternatives, such as forming an internal road maintenance department, reducing the county’s budget, and imposing impact fees on developers. However, supporters of the tax argue that these proposals would not generate the required funds and could negatively impact essential county services and housing costs.
This was not the first time the county has sought voter approval for a sales tax to fund road improvements. A similar proposal in 2014 was also rejected, attributed in part to a previous version that included a tax on groceries, which was not part of this year’s proposal. While the Greenville Chamber of Commerce supported the penny tax this time, they did not campaign as aggressively as they had in 2014, even though voter turnout for this referendum was slightly better than the last one, which failed by a much larger margin.
