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Staff outlines local option sales tax proposal as a way to cut property tax and fund services
Summary
County staff proposed exploring a local option sales tax that would direct 71% to property‑tax credits and 29% to county/municipal revenue; staff estimated a county property‑tax credit value of about $56.5 million and said legal review is needed.
County staff used the budget retreat to outline a potential local option sales tax that would require voter approval and could shift a portion of the tax burden from property owners to sales tax payers, many of whom are nonresidents in Horry County’s tourism economy.
Barry Spivey told council the local option sales tax model being discussed would allocate 71% of proceeds to a property‑tax credit and 29% to a county/municipal revenue fund. He summarized estimated impacts, saying the property‑tax credit could amount to roughly "$56,500,000" under the county’s FY26 assumptions and that the county’s share of new operating revenue could be on the order of nearly $20,000,000 annually to support personnel and services.
Staff emphasized legal limits and caps that must be reviewed before any referendum. Spivey noted there are statutory caps that may require legal adjustments and said staff will investigate the constraints. Several council members expressed interest in the concept while asking for further detail and municipal coordination before any decision to proceed to referendum.
Next steps described at the retreat included further legal review, outreach to municipalities and development of a formal recommendation should council want to pursue a referendum process.
