South Carolina counties are authorized to impose various local option taxes in addition to the 6 percent sales tax imposed by the state. The two local option taxes that can be used for roads are the Capital Projects and the Transportation sales tax.
Capital Project Sales tax: This method has proven to be very popular and is the most widely used. Funds can be used for a variety of capital needs, including roads and bridges. (Counties that impose Capital Project Sales Taxes where ALL revenues are dedicated to transportation needs include Horry, Spartanburg, and York.)
Transportation Sales Tax: This method is all-encompassing. It provides funding for everything from roads and bridges to mass transit and greenbelts.
In order to impose either of these taxes, voters must approve the measure by a referendum, which clearly outlines when the tax begins, ends, and the projects that will be included. If a county wishes to reimpose, they may bring another referendum before voters.
Local option sales taxes are a way to supplement state funding, and they have proven to bring improvements to areas much faster than waiting for projects to appear on a list at the state level.
Counties looking to implement or renew a local option sales tax program for roads on the November 2024 ballot include Anderson, Beaufort, Charleston, Greenville, Horry, Lancaster, Richland, and York.