All Sales Tax Money Will not be Spent in Greenville County and 95% of the $673 million will not be used to fix Roads and Bridges
Opponents of the largest tax increase in the history of Greenville County government are attempting to correct the misinformation they say advocates of the tax are including in pro-tax brochures.
A one cent increase in the current sales tax in Greenville County would be an increase of 17 percent. This is a substantial additional cost for an individual or family on a fixed income.
A pro-tax brochure “paid for by the SC Association of Realtors” states that “there will be a lot of information and misinformation about this issue. They proceed to answer questions and make statements that are misleading or incorrect.
Are food and medicine exempt from the 1cent sales tax increase?
YES, food and medicine are exempt from the 1 cent transportation sales tax.
Government sources in Greenville and Columbia confirm that “all food, prepared and unprepared will be taxed”. Since this misleading information has been exposed, efforts are being made to change the rules. Eliminating the food tax, however, would reduce the taxes collected and create another problem.
A statement on the brochure asks:
Will money raised from the sales tax only be spent on transportation?
YES, Over 95 percent of the money raised from sales tax would be dedicated to road maintenance, and road and bridge repair.
This statement is very misleading and supports the claim that most of the taxes collected will go toward fixing pot holes and improving existing roads. Truth is that 44.6 percent will be used to fix pot holes and resurface roads, 4.5 percent will be used to repair bridges and the remainder of the 95 percent will pay for more construction that many voters do not want to purchase with additional taxes.
Will all the money raised by the sales tax be spent in Greenville County?
YES, according to the law, the money raised by the sales tax can only be spent in Greenville County.
This statement is incorrect. $7,500,000 will be paid to the state the first year to set up the tax collection system, During the next seven years, the state will be paid in excess of $700,000 annually to collect and account for the funds.
The truth is that a total of $12,400,000 will be sent out of the county to administer the tax program. In addition, if SCDOT manages the repair and construction of State roads, Greenville County must pay a fee of 37.5 percent plus right of way negotiations.
More than $673 million will be taken out of the retail sales market over eight years and be paid to contractors and the state. This will impact retail sales in a negative way. Most merchants who are informed oppose the tax increase.
Additional information regarding the use of the sales tax proceeds follows:
The Woodruff Road new Parallel road will cost $45.5 million. It begins at Verdae and ends at Miller Road, that will funnel the traffic back into Woodruff Road. This road cuts through the Hollingsworth property and will benefit the developers and realtors of that property. The bike lanes on this road alone will cost $990,000. The Woodruff Road Corridor Study recommended a different parallel road south of I-85.
A total of $251,626,000 is designated to be spent on new roads and intersection improvements taken from the GPATS list of approved projects to be paid for by state and federal money. The total amount spent for this category (Project 1) is $297,770,000.
Bike lanes are listed on the ballot as sidewalks. The list from the committee showed over $20 million to be spent on bike lanes, excluding those on state roads.
The top two projects on the amenities list are bike lanes in Travelers Rest at a cost of $2,775,000.
The Greenville County sales tax will pay for paving federal roads, including Highways 25 and 29 for which the federal government pays the state $10,000,000 per year to maintain.
The sales tax increase will provide $135,499,152 to pave state roads.
It is estimated that the average Greenville County household will pay $300 per year for the new tax. This assumes that 25 percent of the tax is paid by people living outside the county.
A pot of money totaling $673,193,630 is not as large as the School District debt that county taxpayers must pay off, however, it is a lot of money for special interests to scrap over.
The Realtors are correct when they say there is a lot of misinformation out there. Voters who do not seek and find the facts about this tax scheme may pay a price for their negligence.