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Council holds public hearing on proposed Penny Sales Tax; second reading advances with two abstentions
Summary
Sumter County held a public hearing on a proposed one-percent Capital Project Sales Tax and discussed project prioritization and administration; Council advanced Ordinance 24-1004 to second reading with two abstentions (Councilmen Washington and Baten).
Sumter County Council held a public hearing on June 11 for Ordinance 24-1004, a proposed one-percent Capital Project Sales Tax (commonly called a "penny" tax) that would run up to eight years if approved by referendum and allow bonds not to exceed $40 million.
Chairman James T. McCain opened the hearing and County Administrator Gary Mixon explained that changes in state law affect the maximum term for repeat penny-tax referenda, which now can be eight years in some circumstances. Mixon also explained that procurement and finance would manage projects and funding, and he described why some Penny-for-Progress projects remain incomplete (engineering, scope definition, and budget pressures).
A member of the public, Marcelle Garner, questioned the fairness of a sales tax for residents on low wages, asking how "a person making $7.25 per hour would be able to pay for things such as insurance prices." Council discussed whether project lists are executed strictly in numerical order (they are not necessarily sequential) and how funds saved from underruns may be reallocated to active projects.
Vice Chairman James R. Byrd moved and Councilman Artie Baker seconded to grant second reading to Ordinance 24-1004; the motion carried with Councilmen Washington and Baten abstaining. Council discussion indicated staff will continue refining project scopes and financial reporting ahead of the referendum process.
