Local Option Sales Taxes

How South Carolina counties and cities can supplement state funding for transportation projects

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 provides funding for a variety of capital needs and improvements, including roads and bridges.

Flexible use for various capital needs

Tax sunsets after revenue is raised, or 8 years, whichever comes first.

Transportation Sales Tax

This method is all-encompassing. It provides funding for everything from roads and bridges to mass transit and greenbelts.

Comprehensive transportation funding

Tax sunsets after revenue is raised, or 25 years, whichever comes first.

Referendum Requirements

In order to impose either of these taxes, voters must approve the measure by a referendum, which clearly outlines:

When the tax begins

When the tax ends

The projects that will be included

Why Local Option Sales Taxes Matter

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.

Local Option Sales Taxes by County
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municipal tax relief act

Legislation passed in 2026 allows for municipalities to impose a local option sales tax via referendum if the county does not impose any local option sales taxes. (This would apply to cities within the counties of Beaufort, Greenville, and Oconee.) Revenues from the municipal tax must go towards property tax relief and capital improvements, including roads and bridges.