Voters in Beaufort County, S.C., home to Hilton Head Island and the city of Beaufort, will decide on Nov. 3 whether to raise the local sales tax by a penny to collect as much as $780 million for roads, and whether to let the county borrow up to $450 million against that revenue so construction can start years sooner.
The first question would lift the county’s sales tax from South Carolina’s 6% base rate to 7% for no more than nine years, or until $780 million has been collected, whichever comes first, according to the county and reporting by HERE Beaufort. Collections would begin May 1, 2027. Rent, mortgage payments, gasoline, unprepared groceries and prescription drugs would be exempt.
Borrowing to build now
The second question would authorize general obligation bonds of up to $450 million, payable from the sales tax. The bonds would not be a separate tax; instead, they would allow the county to front-load design and construction rather than waiting for tax receipts to accumulate over close to a decade. The size, timing and pricing of any sales would be set when the county comes to market.
The money is tied to a published list of projects in three categories: intersection safety work, road widening and resurfacing. The ordinance also creates a citizen-led oversight committee to monitor spending and set priorities. County Council gave the plan final approval on June 22.
Second try after a 2024 defeat
County officials say it would be the largest referendum total and the longest collection period in Beaufort County history. Voters rejected a $950 million version in 2024, and the county says the new plan responds by naming specific projects. The vote is one of several local borrowing measures on Nov. 3 ballots, alongside a $175 million school bond in Greenwood, S.C. and Rhode Island’s $275 million college bond. Local business coverage is on the HERE Beaufort business page and the HERE Hilton Head business page.
