New tax, government change: Here’s what Beaufort Co. voters will decide on Tuesday
When Beaufort County voters head to the polls on Tuesday, they will be asked to decide on two major proposals: whether to change the county’s form of government, and whether to add a 1% sales tax to most purchases countywide.
The two referenda were proposed by Beaufort County Council earlier this year after the council grappled with how to handle disagreements with, and harassment allegations against, its county auditor — and after local municipal leaders lobbied for a new countywide sales tax.
Officials have floated both proposals for years, but plans either died in council meetings or were shot down by voters. This year, Beaufort County Council members approved both issues as off-election year ballot questions.
With so many questions about the referenda, as well as concern over low voter turnout, The Island Packet and Beaufort Gazette have compiled information you need to know before you head to the polls on Tuesday.
New sales tax
The first question on all Beaufort County ballots will be whether to support a 1% tax on all taxable purchases countywide. The tax, called a Local Option Sales Tax, or LOST, would have no set end date.
If approved the tax would begin to be collected on March 1, 2022.
Supporters of the tax say it will lessen the property tax burden on residents and will help fund municipal operations and projects, including roads, sewers and parks. 32 of 46 South Carolina counties have implemented a similar sales tax.
The website BoostOurCommunities.com, funded by area municipalities, developed a calculator that says it will estimate the amount of money homeowners may save on their property taxes.
Opponents argue that it’s a regressive tax that favors high-income property owners and landlords over renters and low-income residents.
Others say that the county and municipalities shouldn’t raise taxes without having a dedicated use for the money — like the 2018 Penny Sales Tax Referendum.
The website SayNoInNovember.com, created by the Beaufort County GOP, asks residents to vote against both the sales tax and the change in the form of government questions.
“County government introduced this tax but, if passed, the burden of eliminating it falls entirely on the taxpayers,” the website said. “The tax will continue every year automatically unless taxpayers are able to collect signatures of at least 15% of the voter population to petition County Council to end the tax. A never ending tax, with an almost insurmountable barrier to ending it.”
Here’s how it would work
The LOST would shift some of the county’s tax burden from property owners to tourists, supporters say. According to the ballot question, 71% of the tax proceeds of the tax “may be used” to provide a credit against the property tax liability of county taxpayers. The other 29%, according to the question, “may be used” to fund county and municipal operations.
In actuality, it would take five years for 71% to be allocated to the Property Tax Credit Fund, according to state law.
The S.C. Department of Revenue would collect the tax on behalf of the county, according to state law. The state treasurer would then deposit the revenue into a Local Sales and Use Tax Fund, which is divided into a Property Tax Credit Fund and a County/Municipal Revenue Fund.
In the first year of collection, 63% of the money would be allocated to the Property Tax Credit Fund and 37% would go to the County/Municipal Revenue Fund.
In subsequent years, the percentage rates would swap by 2% each year until the fifth year — when 71% would be allocated to the Property Tax Credit Fund and 29% would go to county and municipal operations.
Change in government form
The second question on Beaufort County ballots will ask voters whether they approve of changing the county’s government structure from Council-Administrator to Council-Manager.
If voters approve, Beaufort County Council would have the power to decide whether to appoint the county’s treasurer and auditor. To appoint the two positions, council would simply have to pass an ordinance.
Supporters of the change say it would allow qualified candidates to apply for the job of treasurer and auditor — instead of voters choosing from political candidates.
However, the proposal has received tremendous push-back from opponents, who say it takes away the public’s right to choose who they want as their elected officials.
There are four forms of government in South Carolina allowed by state law:
▪ Council
▪ Council-supervisor
▪ Council-administrator
▪ Council-manager
Of the state’s 46 counties, 34, including Beaufort County, operate under the council-administrator form of government.
That form gives a professional administrator responsibility for the county’s day-to-day operations. The administrator is hired by and reports to the county’s elected council.
If the referendum question is approved by voters, Beaufort County would join only two counties, York and Greenwood, that operate under the council-manager form of government.
Council-manager is similar to council-administrator in that the administrator or manager oversees county operations and reports to the elected council. The only real difference is that, in the council-manager form, the auditor and treasurer may be appointed by council rather than elected.
If council decides to appoint the two positions, they would serve as department heads hired by and reporting to the county manager, rather than elected officials accountable only to voters.
