Hilton Head officials consider 25-year tax to raise $65M. Where would the money go?
Officials on Hilton Head Island are considering a tax over 25 years that would raise $65 million for parks, recreation and arts, according to discussions at the council’s annual workshop Thursday.
Although the possibility of a referendum has not been discussed in public meetings prior to Thursday, town manager Steve Riley said the proposal has been in the works for several months and could take the place of a special assessment Hilton Head taxpayers have been paying in the years since Hurricane Matthew.
State law allowed the Town of Hilton Head Island to assess a special tax of 5 mils — about $20 per $100,000 of home market value — after the storm so the government could recover and prepare.
“We spent all reserves after Hurricane Matthew,” Riley said. “And we didn’t want to get caught flat-footed again.”
Now, that tax is set to expire in two years, and Riley said he and Mayor John McCann have discussed extending the tax to complete projects in the town’s parks and recreation system.
On Thursday, council members mused what could be completed with money from the special tax, which has raised $13.5 million to replenish hurricane funds since it was implemented in 2016.
“I think many of our parks are tired, and we haven’t made improvements to any of them in a good while,” Ward 6 representative Glenn Stanford said.
He suggested the extra property tax money could be used to finance more of the Coastal Discovery Museum, add pickleball courts at parks on the island or develop a pedestrian bridge near Shelter Cove Towne Centre.
Ward 1 representative Marc Grant suggested using the referendum money to create a flea market or a fishing co-op on the island’s north end.
Not all council members were so interested in authorizing a referendum.
“I have concern with continuing a tax that folks were sold on because it has an expiration date,” Ward 4 representative Tamara Becker said of the five-year tax the referendum would replace.
The council has not decided to place an issue on an upcoming ballot, although assistant town manager Josh Gruber said he’s spoken to Beaufort County Board of Elections director Marie Smalls about how long it takes to print ballots for a new measure.
Council members would have to authorize the referendum through two readings and provide an opportunity for public comment at town council meetings, Gruber said.
This story was originally published December 6, 2019 at 12:03 PM.
