COASTAL OBSERVER

A sales tax that will cut property taxes in Georgetown County while raising revenue for local government will be up for a vote in November, two years after voters rejected the local option sales tax by 54 votes.

County Council this week adopted a resolution to hold a referendum on the local option tax. It passed without comment. The council scheduled two special meetings for next month to give the measure its required approvals.

The state law that allows the local option tax requires that at least 71 percent of the revenue be used to offset taxes on real estate and personal property like vehicles and boats. The other 29 percent can be used to fund local government operations.

In 2024, it was one of two sales taxes on the ballot. The other was a capital project sales tax that would fund 22 infrastructure projects totaling $74 million of eight years. It passed by 754 votes, a margin just over 2 percent.

The capital project tax raised $18.6 million in the first year, according to the state Department of Revenue, nearly twice the amount used in estimates. 

The results of the 2024 referendum surprised proponents, who thought the promise of tax relief from the local option tax would have more appeal that capital projects spread across the county. The referendum was held before Georgetown County’s reassessment of property taxes, which is mandated by state law every five years.

The rise in property values during the coronavirus pandemic created what one official said wasn’t sticker shock, but “sticker stroke.” That made the local option tax a priority for County Council. It can only be placed on the ballot during a general election.

Ahead of the 2024 referendum, the county estimated that the average household would pay an additional $58.13 in sales tax, but save $476.83 in property taxes. That raised eyebrows among voters at a series of forums, but was explained by the impact of tourists. It was estimated that 40 percent of the sales tax would be paid by visitors.