Greenville County considers repealing road fee tied to sales tax vote, but bond debt complicates plan

Greenville County Council is weighing a proposal to eliminate the county’s longstanding road maintenance fee if voters approve an upcoming penny sales tax referendum, though outstanding bond obligations are raising complex legal and financial hurdles.

The debate comes as county leaders conduct public information sessions ahead of the November ballot, where residents will decide whether to enact a 1% sales tax dedicated to funding roadway infrastructure, repaving, and bridge repairs across the county.

Key Takeaways

• Repeal Contingency: Council members have explored a resolution that would formally repeal the existing vehicle road fee if the penny sales tax passes, offering taxpayers a trade-off rather than adding a new tax on top of existing fees.

• Bond Debt Entanglements: The primary complication stems from existing bond debt tied directly to road fee revenues; state law and bond covenants typically mandate that revenue streams backing issued municipal debt cannot be dismantled without a clear, legally sound replacement source.

• November Referendum: The proposed penny sales tax is slated to raise hundreds of millions over its lifespan for backlog resurfacing and intersection modernization, following previous failed ballot initiatives in 2014 and 2024.

• Financial Dilemma: County officials and legal counsel must balance giving taxpayers relief while ensuring debt service requirements remain intact so the county’s credit rating and debt covenants are not breached.

County Council is expected to continue discussions in upcoming committee sessions to determine whether a binding repeal mechanism can be structured before voters cast their ballots at the polls this November.