How Penny Sales Tax Revenue Must Be Spent

Accountability & Transparency

WHAT THE ORDINANCE REQUIRES

State law restricts how a transportation sales tax may be spent. Under S.C. Code §4-37-30(A)(15), the revenue is remitted to the State Treasurer, distributed to the county quarterly, and the revenue and its interest "must be used only for the purpose stated in the imposition ordinance." The county ordinance repeats the restriction in its own words. Section 3.2(b) provides that no revenue from the tax "may be transferred to, or expended for, any purpose other than the projects and purposes approved by the qualified electors in the referendum and stated in this Ordinance."

State law already requires an annual independent audit of county finances. The ordinance expressly requires an annual independent audit of spending under this tax, available to the public. It also establishes a Transportation Transparency Committee. The County Auditor sits on it ex officio; the other six or more members are county residents who are neither elected nor appointed officials, serving four-year terms. The committee meets quarterly and provides regular updates to County Council. The ordinance also requires a public project list every year. Section 3.2(a) directs the County Administrator to compile a project list for the county budget and submit it to Council no later than the first regularly scheduled meeting in May; Section 3.2(b) requires Council to adopt a budget for the tax revenues before each fiscal year begins.

The 2024 Greenville County measure was a capital-projects tax with a fixed project list prepared by an appointed commission. The 2026 measure is a transportation tax under §4-37-30, with projects chosen through the annual county budget and the oversight provisions described here.

Two limits are printed on the ballot itself. Collection stops after eight years or when $1.1 billion has been collected, whichever comes first. State law would permit a term of up to 25 years; this ordinance elects eight.

Campbell's Covered Bridge, a red timber bridge in Greenville County, surrounded by autumn foliage.

Roads cannot exceed $990 million; mass transit cannot exceed 3% of collections or $33 million, whichever is less; greenbelts cannot exceed 7% or $77 million, whichever is less.

WHAT THE COUNTY’S REFERENDUM PAGE SAYS

Greenville County's referendum page says all funds from the tax "will be housed in a separate revenue account," and that revenue and expenses "will be tracked and shown on a public facing website."