The Greenville City Council has unanimously approved the second and final reading of an ordinance to add a 1% municipal sales tax referendum to the November general election ballot. If approved by voters, the proposed penny tax would take effect on May 1, 2027, and would add an extra penny to every dollar spent on eligible retail purchases in the city, exempting most groceries, prescription medicines, or gasoline.

Penny Tax Proposal Details

The city of Greenville estimates that a penny tax could generate $511.6 million over the next eight years, around $64 million annually. Approximately 20% of the generated tax revenue – $102.3 million – would be used for property tax relief for owner-occupied homes in the city. The remaining $409.3 million would fund an expansive list of capital improvements throughout the city, estimated to cost approximately $410.2 million.

The Greenville Arena District plans to complete an estimated $282 million renovation of the Bon Secours Wellness Arena and surrounding 12-acre campus. The district wants to issue up to $60 million in accommodations fee revenue bonds – called capital improvement bonds – to help fund the project.

City Council Actions

City Council gave initial approval to amend an existing intergovernmental agreement with the city of Greenville and Greenville County to update the allocation formula for the new debt issuance. Under the amendment, the city will fund 55% of the annual debt service on the capital improvement bonds using local accommodation tax revenue. Greenville County will be responsible for the remaining 45%.

City Council also approved the first reading of an ordinance authorizing the Commission of Public Works to issue one or more series of bonds not exceeding $275 million to fund capital improvement projects for the Greenville Water System.

Original reporting: Greenville Journal — read the source article.