Everything Horry residents need to know about the penny sales tax referendum on the ballot

Caroline Williamson

Horry County is asking voters next month to renew a 1% sales tax to pay for capital improvement projects for the school district and local universities.

The penny sales tax, which would take a penny off every dollar of purchase would generate about $1.9 billion over the next 15 years, according to Horry County Schools.

An existing penny sales tax, which was passed in 2008, has paid for new schools, athletic improvements, structural repairs and technology. Around $953.6 million has been collected since then and will end in March 2024.

Horry County Schools is the third largest school district in the state with an enrollment of over 46,000 students. Coastal Carolina University has seen a 44% enrollment growth from 2011-2021. Horry-Georgetown Technical College had a record enrollment for the 2022-23 school year with over 8,250 students, according to Horry County Schools.

Voters will be able to decide on the referendum on election day, Nov. 8. Early voting starts on Oct. 24 and ends Nov. 5.

The referendum only says what will happen if the tax is renewed.

“In November 2008, voters approved a penny sales tax to pay for capital improvement projects for Horry County Schools, Coastal Carolina University and Horry-Georgetown Technical College. As of June, more than $953 million has been generated through the tax, which is due to sunset in March 2024,” language in the referendum states.

Voters are being asked to reimpose the 1 percent tax for an additional 15 years.

  • 80 percent of revenues go to Horry County Schools

  • 13.3 percent of revenues go to CCU

  • 6.7 percent of revenues go to HGTC

The percentages would remain the same should the tax be renewed.”

How would the penny sales tax be used?

As the referendum states, the penny sales tax would support construction of new facilities and renovations to existing schools.

One example of how revenue from the existing tax is the new Whittemore Park Middle School, according to Horry County School District 5 representative Howard Barnard.

“We’ve also bought two lots in the Carolina forest area, and we’re preparing them for elementary schools,” Barnard said. “I would imagine, as soon as we get that passed, we’ll use that bond money to build those schools.”

It would not be used to fund general operations of Horry County Schools, Coastal Carolina or Horry-Georgetown Technical college for things like salaries, instructional materials, supplies or other day-to-day costs, according to the school district website.

Residents shouldn’t worry about revenues being used for other purposes — the Sales Tax Act states officials can only use revenue for purposes stated in the referendum.

What day-to-day purchases would be taxed? What would be exempt?

Here’s what items would be taxed, according to Horry County schools.

  • Paper products

  • Soap

  • Pet food

  • Alcoholic beverages

  • Ready-to-drink beverages

  • Ready-to-eat hot foods

  • Foods designed to be heated in stores

  • Prepared hot or cold foods to be eaten in or near stores

  • Vitamins

  • Certain medicines that are not already exempt from state sales and use taxes

So what items won’t be taxed? Chances are, your routine trip to the grocery store won’t include a sales tax. According to Horry schools, unprepared foods, or foods intended to be eaten at home, will be exempt. Salads, sandwiches, seeds or planted intended to grow food will be exempt as well.

Around 50-60% of the revenue comes from tourists, according to Fannie Heizer of Burr & Foreman LLP, who spoke at an April school board meeting.

Owner of Original Benjamin’s Calabash Seafood Jimmy Frost, whose restaurant would be affected by the sales tax, said he was in support of the referendum.

“We want people to come here and enjoy themselves and we sacrifice a lot for them,” Frost said. “If they can’t afford a penny for some items that they they purchase Well, you know, I’m sorry.”

How much will the penny sales tax cost you annually?

The Horry County School District states that “A typical family in Horry County pays an additional $99 a year in sales taxes. This amount is based on IRS sales tax tables for a typical household with the county’s median annual income of $51,570.”

What happens if the sales tax isn’t renewed?

At an April school board meeting, board members emphasized that without the 1% sales tax, residents could see an increase in property taxes in order to pay for new schools.

HCS has a flier on their website detailing what would/won’t happen if the tax isn’t approved. Without the 1% sales tax, the school district would fund improvement projects through municipal bonds, which would increase property tax rates.

How much tax rates would increase is unclear, according to the flier.

Barnard, whose district covers Surfside Beach and St. James, said that an increase in property tax would be detrimental to residents.

“If we don’t re-pass the sales tax, the school board would end up having to raise property taxes tremendously, Barnard said. It would make a huge difference, particularly in times when we’ve got high inflation, and it’s very difficult for folks who live in our community.”

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