Hilton Head may ask you to pay more in property taxes in 2021. Here's why

If you live on Hilton Head Island and want better roads and pathways or for the town to take on new projects, you may be asked to pay up.

Town Manager Steve Riley last week introduced the possibility of having a "quality of life" property tax referendum on the 2021 ballot to help pay for certain capital projects.

The referendum would increase property taxes so that the town could take on and maintain those projects. Specifics of the plan and which projects it would fund have not been determined.

If Town Council decides to offer the referendum, the town would need to figure out which projects to prioritize and determine how much property taxes would go up, Riley said.

"There are road needs, there are park needs, there are pathway needs, there are arts and cultural needs, there is the Mitchelville Preservation Project," Riley said. "There are a lot of demands on resources. How do you properly prioritize that?"

Riley said the tax increase would likely be tied to the projects, and eventually would go away.

Council member David Ames said that when Riley introduced the possible referendum last week, it was the first he had heard of it. When asked if he would support it, he said he first needs more information about it. He said the second phase of the town's visioning process will likely determine which projects should be prioritized.

Council member John McCann had similar thoughts, noting he needs more information.

Calls to Mayor David Bennett and council members Kim Likins, Tom Lennox, Bill Harkins and Marc Grant weren't returned Thursday.

Riley said the town has never had a referendum tied to capital projects, but has had several tied to land acquisition.

He said 2021 would be the best year to hold the referendum because:

▪ It will take several years for the town's comprehensive plan to be updated.

▪ By 2021, the town's five-year 5-mill property tax increase to replenish hurricane recovery reserves will be ending.

▪ He doesn't think it would be wise to hold a referendum in 2020 amidst a national election.

He said it will take several years to work out the details of the plan.

"We need a focused effort on the comprehensive plan. We need to do — at the minimum — a needs assessment on recreation, and we need to identify and agree upon what improvements we think we need locally and regionally in terms of arts and culture," Riley said. "If we have plans with no ability to implement, we don't have much of anything."

Riley said this does not mean town projects will be on hold unless a referendum is approved, but said the town simply can't take on new projects without a revenue source to fund them.

This fall, Beaufort County residents will be asked to vote on a sales tax referendum that will add a penny of tax to every dollar spent in the county to fund a project that will widen the Hilton Head bridges to three lanes.

This story was originally published July 5, 2018 at 12:22 PM.