Beaufort County advances $780M roads tax referendum

Summary

Beaufort County Council advanced a Nov. 3 referendum that would ask voters to approve a 1% sales tax for $780 million in transportation projects.

Why this matters

Voters could decide Nov. 3 whether to fund 66 transportation projects through a 1% sales tax collected over nine years. The measure would affect most retail purchases and shape how the county pays for road work in coming years.

Beaufort County Council gave preliminary, unanimous approval Tuesday to a November referendum that would ask voters to approve a 1% sales tax for transportation projects.

Council must vote two more times to finalize the question. If approved, residents will vote Nov. 3 on whether to raise $780 million for road and intersection improvements across the county.

The tax would be collected for nine years. Council rejected an earlier eight-year proposal because it would have applied to unprepared food, including grocery items, and raised the money more quickly.

Councilman Logan Cunningham of Bluffton said excluding unprepared food would shift more of the tax burden to visitors who dine out. “We should be letting our tourists fund as much as possible,” Cunningham said. He said tourists would pay 45% to 50% of the cost under the current plan, up from about 30% if unprepared food were taxed.

A committee with representatives from north and south of the Broad River recommended funding for 66 projects, including highway widening, roundabouts, resurfacing, dirt road paving, and intersection safety work.

Examples include $39.7 million for safety improvements at Spanish Wells Road and William Hilton Parkway on Hilton Head Island, $42.1 million for resurfacing and dirt road paving along Robert Smalls Parkway in Beaufort and Port Royal, $59.3 million for Trask Parkway in Beaufort, $27.1 million for Fording Island Road on Hilton Head Island, and $21.3 million for William Hilton Parkway on Hilton Head Island.

The ordinance would also allow the county to issue bonds, but bond proceeds would count toward, not add to, the $780 million total. Passiment said that point would need to be clear to voters.

Assistant County Administrator Jared Fralix said issuing bonds would give the county upfront money for larger projects before sales tax revenue accumulated. He said the county would likely need to issue about half of the $780 million in bonds.

The proposal drew criticism tied to the county’s 2018 transportation referendum, which raised $120 million. Ann Ubelis, chairwoman of the Beaufort Tea Party, told council that about 20 projects from that referendum were still unfinished. She said carrying those projects into a new referendum would be “double-dipping.”

Ubelis said she supported the tax but not the $780 million amount, and said the program needed stronger controls.

In 2022, voters approved a separate $100 million, 1% sales tax referendum for land preservation. Retailers stopped collecting that tax in 2025.

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