The city of Greenville has taken the initial step to bring a penny tax proposal before voters in the November election to fund infrastructure projects and provide property tax relief to residents. Greenville City Council unanimously approved the first reading of an ordinance to add a 1% local sales tax referendum to the ballot at its July 13 meeting.

Penny Tax Proposal Details

The proposed 1% local sales tax would add an extra penny to every dollar spent on eligible retail purchases in the city, exempting most groceries, prescription medicines, or gasoline. The city of Greenville estimates that a penny tax could generate $511.6 million over the next eight years, approximately $64 million annually.

State law requires that at least 20% of the tax revenue – estimated to be $102.3 million – must be used to reduce property taxes for owner-occupied homes in the city. According to the city, a home valued at $250,000 would receive a $300 annual tax reduction. The remaining $409.3 million would be used to fund 527 proposed capital projects, estimated to cost a total of $410.8 million.

A majority of the tax revenue – approximately $294.9 million – is proposed to be used for roadway improvements, such as street resurfacing, sidewalk enhancements, bridge replacements, and intersection improvements. The penny tax revenue would also be used for other projects, including the rebuilding of the Queen Street bridge, replacing the West Greenville Community Center, renovating the Greenville Transit Center, and improving Wade Hampton Boulevard.

Next Steps

Greenville residents are invited to review and provide feedback on the city’s proposed project list at a public meeting scheduled for July 28. The drop-in style meeting will be held from 11 a.m. to 7 p.m. at the Greenville Civic Design Center at 15 S. Main St.

Original reporting: Greenville Journal — read the source article.