The city of Greenville is considering asking voters to approve a penny tax to provide property tax relief to residents and fund critical infrastructure projects.
Estimates show that a 1% local sales tax could generate $511.6 million for the city of Greenville over the next eight years. The tax would add an extra penny to every dollar spent on qualifying retail purchases in the city, exempting most groceries, prescription medicines or gasoline.
Greenville City Council approved the first reading of an ordinance to add a 1% local sales tax referendum to the November ballot during its July 13 meeting. The second reading of the ordinance will take place on Aug. 10.
Before second reading, community members had the opportunity to learn more about the proposed penny tax during a drop-in-style public meeting held July 28.
Property tax relief
The city of Greenville’s ability to impose a penny tax with voter approval was granted under the Municipal Tax Relief Act passed by the South Carolina General Assembly in May. Previously, only counties could propose such a tax.
The new state law allows municipalities within a county without a penny tax to propose their own. Greenville County is one of three counties in South Carolina without a local sales tax.
At least 20% of the generated tax revenue must be used to reduce property taxes for owner-occupied homes in the city under the new state law. The city estimates that $102.3 million will be used for property tax rebates over the next eight years.
“We haven’t raised property taxes in a long time,” said Greenville Mayor Knox White. “We’ve also had a lot of growth in the city, so we’ve been able to grow our budget without raising taxes, but an opportunity to roll back taxes in this case would be very appealing, I think, to city residents.”
If approved by voters, the penny tax would take effect on May 1, 2027 and remain in place for up to eight years.
Greenville City Manager Shannon Lavrin said the credit property owners would receive on their property tax bill would vary each year based on how much tax revenue the city collects. She said that homes valued at around $500,000 are estimated to receive approximately $600 a year in property tax relief.
The city of Greenville is proposing using $20 million in penny tax revenue to fund improvements along Wade Hampton Boulevard. Photo provided by the city of GreenvilleInfrastructure projects
The city of Greenville plans to use the remaining $409.3 million in penny tax revenue to fund 527 infrastructure projects. The proposed project list can’t be altered after City Council’s second vote on the penny tax ordinance.
The majority of the tax revenue – nearly $295 million – is slated to fund 470 roadway improvement projects across the city, such as street resurfacing, sidewalk enhancements, traffic congestion relief, bridge replacements and intersection improvements.
Under this category, the city plans to fund the $11 million replacement of the nearly 100-year-old Queen Street bridge. The bridge serves as a key connection between the Southernside and West Greenville neighborhoods. The project was originally selected for Greenville County’s capital projects sales tax program that was rejected by voters in 2024.
The other categories of infrastructure projects include:
- 12 stormwater and road-related drainage projects – $32.4 million
- 25 sewer infrastructure projects – $41.9 million
- 18 public assembly facilities, administration buildings and public safety projects – $17.6 million
- two fire station replacements – $24 million
Clint Link, the city’s director of engineering services, explained that many of the infrastructure projects have been identified by the city for several years but lack the necessary funding to start construction.
For example, the city has recognized a need to improve Wade Hampton Boulevard since the completion of the corridor’s strategic plan in 2019. A $20 million improvement project has been planned for the seven-lane highway, which is now proposed to receive penny tax revenue.
John Slipke, co-vice president of the Haynie-Sirrine Neighborhood Association, commended the city for creating a project list that he feels is neighborhood-focused. He is also pleased by the more than $1.1 million in tax revenue slated to be used to improve Haynie Street, one of the neighborhood’s high-traffic roadways.
“I regard this as a transformational opportunity to really focus on the infrastructure projects that have real meaning and represent a lot of improvement to the city,” Slipke said.
Tax considerations
The city of Greenville is one of several municipalities in Greenville County moving toward a final vote on penny tax proposals. Other cities considering this tax option include Travelers Rest, Mauldin and Simpsonville.
In addition, Greenville County Council gave final approval to add its own local sales tax referendum to the ballot at its July 21 meeting. The county’s proposed transportation sales tax would go towards local road projects, greenbelts and public transit.
If voters approve both a county and city penny tax in November, all qualifying purchases in the city of Greenville would see a 2-cent-per-dollar sales tax increase.
Steve Schofield, a city resident and co-founder of Pangaea Brewing Company, shared concerns about how a penny tax would increase prices for his customers at Tuesday’s public meeting. He currently pays the city’s 2% local hospitality tax along with the 6% state sales tax.
“While yes, this is a huge increase to me, I know this is going to benefit the place that I’m living in and the community that I’m in, at the end of the day, so that is a huge plus overall,” Schofield said.
For more information, visit greenvillesc.gov/municipal-tax-relief-act.
Interactive map
The city of Greenville has created an interactive map to display the 527 infrastructure projects that would receive revenue generated from the proposed 1% local sales tax. The map is available online at experience.arcgis.com/experience/7290fd5d078642b39ffa194bd9c14788.
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Project tiers
City staff has prioritized the infrastructure projects into three tiers to reflect the order in which each would be funded and completed. Notable tier one projects include:
- West Greenville Community Center replacement: A $10 million project to replace the existing center originally built in 1978.
- Queen Street Bridge replacement: A $11 million project to replace the approximately 100-year-old neighborhood bridge.
- Greenville Transit Center renovation: A $6 million project to renovate the existing transit facility in downtown Greenville.
- Wade Hampton Boulevard roadway project: A $20 million project to improve the corridor between Church Street and Pleasantburg Drive.
- Salters Road realignment: A $12.2 million project to reconfigure the roadway to tie into the intersection at Woodruff Road and Mall Connector Road.
- Chestnut Street connector: A $5 million project to create a link between the southern and northern parts of the Greenline-Spartanburg neighborhood.
