County transportation sales-tax package under review after November referendum loss

Lancaster County staff and council members discussed a proposed transportation sales-tax package that county volunteers and staff refined after a 2024 referendum failed.

County officials said the November 2024 proposal — a 1% local sales-tax increase that would have raised the county rate from 8% to 9% — was estimated to generate about $405 million over 15 years and included roughly $100 million for municipal and county roads and about 30 state and local road projects affecting the city of Lancaster. That measure did not pass.

The County Transportation Committee of citizen volunteers recommended a smaller package on March 27, 2025, of roughly $216 million over 10 years; staff asked council to consider returning a larger $250 million over-10-years proposal so the measure would still include funds for municipal roads and cost escalations. Officials said both options would reserve at least $60–$70 million for widening South Carolina Highway 521 to add one lane in each direction from the state line to Highway 75 near Walnut Creek.

County staff said a transportation sales tax differs from the county's capital project sales tax and can run for up to 25 years; the staff presentation described a 10-year approach tied to a dollar target (the tax expires when the dollar amount or the time period is reached). Officials said roughly 30% of sales-tax revenue is expected to be paid by nonresidents (visitors and out-of-county shoppers), an estimate staff said it would verify.

The county noted it spends about $4 million–$5 million annually on county roads from state gas-tax allocations and other state funds and that county funding attracts state and federal matching funds. Staff told county council the Transportation Committee's recommendation would include municipal and county roads with the city seeing more than 40 prioritized road segments in previous lists; staff said a road-by-road list would be made available if the council moves forward.

County Council is scheduled to decide whether to direct staff on April 28, 2025, to prepare a resolution for a referendum. City council members at the joint meeting were invited to weigh in; several council members said they supported a renewed local package but stressed control and transparency over how funds are allocated and contracted.

Ending: County staff will provide road lists and cost details to both councils if county council votes to direct staff to draft a referendum resolution.