Our view: Vote no on Beaufort County 1 percent sales tax

Voter turnout is historically low in off election years, those years when there are no statewide or presidential races on the ballot.

Take the 2019 election results in Beaufort County. That year there were a number of local races and questions on ballots across the county.

Yet, voter turnout in some districts was as low as 3%, while other areas saw turnout just above 36%.

There’s no reason to believe 2021 will be any different.

For that reason alone, the decision to place a referendum on the ballot that would institute a new 1% sales tax for all of Beaufort County should have been reconsidered.

Whether the referendum passes or fails, the decision will likely be made by a very small minority of voters.

Beaufort County Council voted in a split decision to place the question on the ballot at the request of several local mayors.

Certainly, the County Council was right to place the measure before voters, but why now?

We know there will be a gubernatorial election in 2022, a race bound to increase voter participation and make certain that more Beaufort County voters would have a say.

But what’s done is done and the referendum asking voters to approve a 1%sales tax will appear on the ballot on Nov. 2.

It will likely appear in a form like this:

Must a one percent sales and use tax be levied in Beaufort County for the purpose of allowing a credit against a taxpayer’s county and municipal ad valorem tax liability and for the purpose of funding county and municipal operations in the Beaufort County area?

What does all that mean?

The county, which by law cannot advocate for or against the proposition, has set up a webpage designed to explain it all.

Basically, the local option sales tax, often abbreviated as LOST, would be a tax on most goods and services at retail businesses, though there are exemptions such as most non-prepared food items, prescription drugs, and medical supplies.

The money collected, estimated to be $48.5 million a year, would then be divided between the state, property owners and the municipalities.

The state would take 5%, roughly $2.4 million, off the top. Next, 71 percent of what remains would be refunded to county property owners as property tax relief based on population, and the 29 percent left would be split among the municipalities for their use on everything from sidewalks and storm sewers to parks and roads.

Beaufort, Bluffton, Hardeeville, Port Royal and Yemassee have joined forces in an online campaign, called Boost our Communities, to spread the word about the tax and where the money would go.

The site features a calculator to help Beaufort County property owners figure out how the tax would benefit them and a list of frequently asked questions.

One of the questions that stands out is “I don’t own a home, how is this going to help me?” The answer is telling.

“Any individual who owns personal property (vehicles, watercraft, etc.) will see a reduction. In addition, landlords will see a reduction that could be passed on to renters.”

This tax will benefit property owners, though they, just like everyone else including tourists, will still be paying more on every dollar they spend on most goods.

But it leaves renters out in the cold.

The notion that landlords will suddenly reduce rents or not increase them because of the tax is almost fantastical.

The reality is, property tax rebate or not, it is the poorest among us who will feel the tax the most.

So let’s say the small percent of voters who go to the polls on Nov. 2 approve the tax and later determine it was a mistake.

The tax has no sunset date, meaning it will last until voters decide to rescind it and the process for doing so has been described as onerous at best. First, voters must wait two years to attempt to eliminate the tax and a petition of 15% of all qualified Beaufort County voters, roughly 21,000 people, must be presented to the County Council to get it back on the ballot.

Supporters point to the fact that 32 of South Carolina’s 46 counties already have a local option sales tax in place, the earliest established in 1991.

But that doesn’t mean Beaufort County has to follow.

As it stands, this tax will be another burden on low-income residents collected for municipalities who do not have to have a set plan for its use.

There is some comfort in knowing that certain taxes, such as transportation taxes such as the one set to expire in the county this year, are designated for specific projects or purposes. You know where the dollars will go.

We understand the need for infrastructure and improvements over time to all manner of public places and amenities, but at what point do voters say enough?

We urge Beaufort County voters to check out the various websites we have shared and to consider their options, but we believe they should vote no on Nov. 2.

We appreciate the decision to put the question before voters, but we are reminded of a quote by humorist Gerald Barzan who famously said, “Taxation with representation ain’t so hot either.”

This story was originally published October 24, 2021 at 6:00 AM.