Beaufort County Faces Big Decisions on Proposed Sales Tax Increase
Beaufort, South Carolina, is buzzing with discussions about a significant proposed change that could impact the wallets of its residents. Local leaders are pushing for nearly a billion dollars in new funding through a 1% sales tax increase, sparking lively debate among community groups, including the Beaufort Tea Party, which labels the proposal a “sales tax nightmare.”
The Proposal: What’s on the Table
The proposed “penny tax” aims to raise $950 million over the next decade, focusing on transportation and infrastructure projects designed to accommodate Beaufort’s growing population. If passed, this would become the longest and largest sales tax initiative in the county’s history.
This tax would be applied to a range of store purchases, with some notable exceptions. Medical prescriptions, supplies, and unprepared foods would remain tax-free, while rent, mortgage payments, and fuel costs would also be exempt from this new tax proposal.
So how would the funds be allocated? Here’s a look at some of the key areas where the money is expected to go:
- $180 million for underfunded projects from the 2018 transportation sales tax, including improvements to major roads.
- $120 million earmarked for the Triangle Project, which involves key intersections like Highway 170 and Highway 278.
- $80 million dedicated to mass transit improvements.
- $55 million aimed at emergency evacuation and resiliency projects.
Support for the Measures
Supporters argue that the rapid growth in Beaufort requires urgent action to improve safety and infrastructure. Jared Fralix, the county’s assistant administrator-engineering, highlights the necessity of making roads safer for both residents and visitors. “We’re experiencing high growth throughout our county, and our roads need to meet those demands,” he states.
Opposition Voices
Contrasting sharply with this viewpoint, the Beaufort Tea Party has launched a campaign against the sales tax increase. Chairwoman Ann Ubelis claims that residents should be wary of a county council that has faced ethics investigations and doubts the need for additional funding, especially for projects that the council should have completed with funds already designated from earlier referendums.
Ubelis raises concerns about a second referendum question on the ballot, which asks voters to approve $515 million in general obligation bonds. She points out that this bond issue wasn’t adequately publicized, suggesting that it represents a deceptive tactic by the county to secure additional funding without proper discussion. “It’s a con game by the County Council,” Ubelis asserts.
Understanding the Financing
Fralix counters this criticism by explaining that the bond issue is not an extra tax and would allow the county to proceed with the projects without waiting for all sales tax funds to be collected. “If the sales tax question fails, the bond question automatically fails,” he clarifies, emphasizing that the revenue generated from the sales tax would directly repay any bonds issued.
Community Reactions
The Beaufort Tea Party is mobilizing, planning rallies, and putting up signs to express their opposition to the tax increase. They argue that a long-term sales tax will disproportionately affect those with lower incomes, particularly the elderly. The notion of “double-dipping” for projects that had allocated funding prior raises further alarms for the group.
As both sides prepare their cases, residents find themselves in a crucial decision-making moment. With the current sales tax rate at 7%, if approved, the new infrastructure sales tax would replace the expiring green space tax, keeping the rate constant until 2035. Whatever the outcome may be, Beaufort County is at a crossroads, navigating between growth and fiscal responsibility.
