Received Info on Initiating County-Wide Penny Tax, Bond
FAIRFIELD COUNTY – Fairfield County Council voted last month to raise the ounty’s millage by 8 mills – the second tax increase in as many years. In June, 2023, council voted to raise the millage by 8 mills. County Administrator Vic Carpenter termed the 2025 increase a capital project tax that can be used to purchase county vehicles in the future.
On Monday night, council heard an overview from the South Carolina Association of Counties on how the county could also implement a one-cent capital projects sales tax on top of the property tax increase – and the steps needed if council decides to put the measure before voters.
Carpenter introduced John DeLoach, a staff attorney with the state association, who outlined how the tax would work, how projects would be selected, and the timeline for a possible referendum that could make a penny tax a reality.
What the Tax Would Do
DeLoach said the proposal would add one percent to the existing sales and use tax on goods and services purchased in Fairfield County. The additional revenue would go into a special account managed by the county treasurer.
“[That tax] is designed for major capital expenditures,” DeLoach said, stating that it could only be used to fund capital projects – such as water and sewer infrastructure, roads, bridges, public safety facilities, utilities, and other infrastructure, courthouse improvements, fire and EMS facilities, or even joint projects with municipalities.
Could Be Used To Issue Bonds
DeLoach noted that the penny tax could also allow the county to issue bonds to begin projects sooner. The sales tax revenue could be pledged as a revenue stream that would be used to repay the bonds.
“If you choose to go the bond route,” he said, “you have to spell out the total amount of bonds in the referendum itself.”
DeLoach also pointed out that the law requires counties to select projects carefully and list them specifically on the ballot.
“Once it’s approved, funds can only be used for the projects that voters saw on the ballot and voted for,” he said.
Timing and Legislative Considerations
DeLoach cautioned that the timing to hold a referendum could be important. A bill pending in the state legislature would, if passed, require all local tax referendums after January 1, 2027, to be held only during general elections in even-numbered years.
“That could push any later effort to 2028 if the county waits too long to act,” DeLoach said.
Council members took no action following the presentation.
Steps in the Process
The process for initiating a penny sales tax begins with council passing a resolution to form a six-member Capital Project Sales Tax Commission. The county would appoint three members, and the three municipalities – Winnsboro, Ridgeway, and Jenkinsville – would appoint the remaining three based on population.
Once appointed, the commission would meet to estimate how much revenue the tax would generate and decide what projects to recommend for funding. Those recommendations would then be sent to County Council, which would draft the ordinance and approve the final referendum language for the ballot.
To appear on the November 2026 general election ballot, the county would have to submit the referendum language to the Election Commission by Aug. 17, 2026. If approved by a simple majority of voters, the tax would take effect on May 1, 2027, and could run for up to eight years before expiring. Council could later ask voters to renew it for additional projects.
