Schoold District moves forward to raise county's sales tax

The measure would be placed on the ballot in November's general election.

How the money raised from the one-cent tax would be spent, however, is a first in South Carolina. Under old legislation, all revenue from such a tax would go solely to the school district. But a new law passed this year allows local school districts to share part of the revenue for capital improvements "on the campuses of a technical college or other state institution of higher learning located in the county." In this case, that would be Coastal Carolina University and Horry-Georgetown Technical College.

Twenty percent of the sales tax would be divided between CCU and HGTC, with the majority going to CCU. The rest would go Horry County schools. Some of the money would be used to pay off already-incurred debt, while the remaining cash would go toward expanding or building new schools.

Members briefly discussed concern that voters would want specificity with regards to how the money would be used instead, not given just general improvement plans. The proposed improvements have not been finalized, but by law, the board, CCU, and HGTC must have the details in writing before it goes to the ballot. If it is passed, the board couldn't use the money for anything other than what it outlines on the ballot.

Why would a district want to share its money? It doesn't have to under the new law, but it has the option. Board Chairman Will Garland said he was an enabler of the new law, and in fact, approached a house member with the idea of sharing.

Garland is also the senior vice-president of finance and administration at Coastal Carolina University. As such, Garland removed himself from discussion of the topic or voting on it Monday night until the State Ethics Commission rules on whether it would cause a conflict of interest.

Board Member Kay Loftus also removed herself, citing her husband's employment with CCU.

Garland thinks by sharing the tax revenue with the schools, the proposal has a better chance of passing. He thinks young college voters will see a benefit and turn out at the polls.

Members say the one-cent-per-dollar sales tax, which could only last 15 years by law, is necessary to keep up with Horry County's growing student population. They expect 1,000 new students each year over the next 15 years.

Board members say by raising the sales tax, the county's property tax would go down. Garland said a "yes" vote means lower property taxes, and a "no" vote means higher property taxes.

The board will meet again July 28th, the same day a draft ballot question is expected to be released.

The district passed a similar penny tax in 2006, but the State Election Commission overturned the tax after two citizens appealed it. They said the school board put out fliers at polling locations that violated voting laws.