Voters will decide whether to approve a 1% sales tax to raise up to $780 million for transportation projects
By Delayna Earley
The Island News
When Beaufort County voters head to the polls Nov. 3, they will be asked to decide whether to add another penny to the county’s sales tax to pay for transportation projects.
But they will actually face two questions.
The proposed 2026 Transportation Sales and Use Tax Referendum would impose a 1% sales tax for no more than nine years, or until $780 million is collected, whichever comes first. A second ballot question would authorize Beaufort County to issue up to $450 million in general obligation bonds, payable from the sales tax, allowing the county to begin some projects before all of the money is collected.
The referendum comes two years after voters rejected a similar transportation sales tax proposal in November 2024 and while projects funded by the county’s 2018 transportation penny remain unfinished.
So what exactly are voters being asked to approve, where would the money go and why is the county asking for another penny before completing the work from the last one?
Here is what voters need to know.
Two questions, not one
Question 1 asks voters whether they approve a 1% sales and use tax for transportation projects throughout Beaufort County.
If approved, the tax would begin May 1, 2027, and remain in effect for no more than nine years or until $780 million is collected. If the county reaches the $780 million cap before nine years have passed, collection of the tax would stop, according to information provided by the county to The Island News.
The $780 million would be divided among three categories: $326 million for intersection and safety projects, $205 million for road widening and $249 million for resurfacing and dirt-road paving.
Question 2 asks voters to authorize up to $450 million in general obligation bonds, maturing over no more than nine years and payable from the proposed sales tax.
The bonds are intended to allow the county to begin eligible transportation projects sooner rather than waiting for enough sales-tax revenue to accumulate.
A “yes” vote on Question 1 approves the tax. A “no” vote means the additional 1% tax would not be imposed.
A “yes” vote on Question 2 gives the county authority to issue the bonds. A “no” vote means the county would not receive that borrowing authority.
The county says the bond authorization is tied to the sales-tax revenue and would not serve as a separate source of funding if the sales tax itself is rejected.
Where would the $780 million go?
The proposal contains projects throughout Beaufort County, ranging from relatively small intersection improvements to road-widening projects costing more than $100 million.
North of the Broad River, the list includes a $4.8 million turn lane at Ribaut Road and Lady’s Island Drive, $28.37 million in improvements along the Ribaut Road corridor in the City of Beaufort, $19.36 million for the Gateway to Port Royal along Ribaut Road and improvements to intersections including Ribaut Road and Depot Road, Grober Hill Road and Parris Island Gateway, and Laurel Bay Road and Joe Frazier Road.
The proposal also includes improvements along Robert Smalls Parkway, Sea Island Parkway, Parris Island Gateway, Trask Parkway and Sam’s Point Road, along with municipal resurfacing in Beaufort and Port Royal.
South of the Broad, proposed projects include $14.4 million for improvements at Squire Pope Road and William Hilton Parkway, an $18.05 million diverging diamond interchange at S.C. 170 and U.S. 278, improvements along Bluffton Parkway and projects at Sea Pines Circle, Spanish Wells Road and William Hilton Parkway, and several other intersections.
One of the largest projects is an estimated $103.8 million widening of S.C. 170 from U.S. 278 to S.C. 462.
The resurfacing portion of the proposal includes state and local roads as well as county-owned dirt roads and municipal resurfacing projects.
County officials say the projects were developed through a months-long review by the 15-member Transportation Advisory Committee created by County Council in late 2025. The committee included representatives from each of the county’s 11 council districts and Beaufort, Port Royal, Bluffton and Hilton Head Island.
The committee reviewed existing transportation studies and heard from municipalities and other agencies while considering safety, evacuation routes, crash and congestion areas and transportation movement.
County Council approved the referendum ordinance 8-3 following a public hearing and third and final reading June 22. Council members David Bartholomew, Paula Brown and Thomas Reitz voted against the measure. The three had supported the ordinance at first reading but voted against it at both second and final reading.
Is the project list guaranteed?
The money generated by the tax would be dedicated to transportation projects identified in the voter-approved program, but that does not necessarily mean every project’s scope and estimated cost would remain unchanged over the life of the program.
In response to questions from The Island News, the county said it would retain authority to manage implementation as projects move through design, permitting, right-of-way acquisition and construction and as costs change.
Changes to the approved project list would have to comply with state law and receive County Council approval, according to the county.
That distinction is particularly relevant because of what happened with the county’s previous transportation penny.
Why another penny when the 2018 projects aren’t finished?
For voters who remember approving a transportation sales tax eight years ago, the new referendum raises an obvious question. Why is Beaufort County asking for another $780 million when some of the projects voters approved in 2018 are still unfinished?
The 2018 referendum authorized a 1% transportation sales tax for no more than four years or until $120 million was collected, whichever came first. Voters approved $80 million for U.S. 278 corridor improvements, $30 million for Lady’s Island corridor improvements and $10 million for sidewalks and multi-use pathways.
The county actually collected more than expected.
Its May 2026 financial report shows approximately $146.55 million in 2018 sales-tax revenue and interest, about $26.5 million more than the original $120 million estimate.
But collecting the money and completing the projects have happened on very different timelines.
Some projects required years of engineering, environmental review, permitting, public meetings, right-of-way acquisition, utility relocation and coordination with the S.C. Department of Transportation before construction could begin.
Costs increased along the way.
By 2025, County Council acknowledged that inflation and rising construction costs had significantly increased the estimated cost of the original projects and that, despite collecting approximately $146.5 million, there was not enough money to complete everything as originally envisioned.
Council subsequently redefined and reprioritized the remaining project list, identifying projects that could be completed with the money available. The county’s records show actual collections exceeded expectations but rising construction costs nevertheless left the program short of what would be needed to deliver the original scope.
Several projects from the 2018 program have been completed, including the Sam’s Point Road right-turn lane, Airport Frontage Road Phase 1, Bluffton Parkway Pathway, Laurel Bay Road Pathway and Ribaut Road Sidewalk.
The county says it remains committed to completing the majority of the remaining 2018 projects by the end of 2028.
According to information provided to The Island News, two projects are under construction or recently completed, two are going through procurement and nine remaining pathway projects are expected to be completed by 2028. The remaining projects are expected to enter the right-of-way acquisition phase by the end of 2026.
The major exception is the U.S. 278 Corridor Project, which includes replacement of aging bridge infrastructure connecting Hilton Head Island to the mainland and is targeted for completion in 2031.
The important distinction for voters is that the 2018 tax is no longer being collected, even though work funded through that referendum continues.
The proposed 2026 tax would create a separate transportation program with a separate project list. Although some proposed projects involve corridors that have received previous transportation funding, the two programs are legally distinct.
What has changed since 2018?
The county says lessons from the earlier program were considered while developing the new proposal.
According to responses provided to The Island News, estimates for the 2026 projects account for inflation, engineering, environmental review, permitting, right-of-way acquisition, utility relocation and unexpected expenses.
The county also plans to establish a citizen-led oversight committee if the referendum passes. The volunteer group would include representatives from municipalities and unincorporated Beaufort County and would monitor projects, schedules and expenditures.
The proposed bonds are another attempt to address timing.
Instead of waiting for years of sales-tax collections to accumulate before enough money is available to move major projects forward, Question 2 would allow the county to borrow up to $450 million against the anticipated sales-tax revenue.
The county has not, however, identified in its response to The Island News exactly which projects would be accelerated using the borrowed money or provided anticipated interest, financing and issuance costs for the bonds.
What happens if voters say no?
If voters reject Question 1, Beaufort County would not receive the dedicated $780 million revenue stream and the projects included in the 2026 program would not be funded through the proposed penny program.
That does not necessarily mean every project on the list would disappear.
The county said it would have to pursue projects as other funding becomes available, including state and federal grants, SCDOT funding, municipal money and public-private partnerships.
Projects on state-maintained roads would remain the responsibility of SCDOT, although Beaufort County could partner with the state or contribute local funding to move projects forward.
The bond authorization does not provide a fallback if voters reject the sales tax because the proposed debt is tied to the penny-tax revenue.
Beaufort County’s official website describes the referendum as funding transportation projects aimed at safety, mobility and connectivity, including road expansion, intersection improvements, resurfacing and paving.
Ultimately, voters will decide whether another penny on taxable purchases is how they want to pay for them.
Delayna Earley, who joined The Island News in 2022, formerly worked as a photojournalist for The Island Packet/The Beaufort Gazette, as well as newspapers in Indiana and Virginia. She can be reached at delayna.theislandnews@gmail.com.