County Mulls One-Cent Sales Tax

A new tax for Dorchester County shoppers may ease the tax burden on Dorchester County property owners — and possibly encourage shoppers to buy local, according to Auditor J.J. Messervy.

Councilman Jay Byars proposed a one-cent sales tax referendum Tuesday during a county council special meeting regarding capital projects at the . The move would not fund capital projects, but allow for more revenue generated for the county from the new tax base and asking for a higher rate in property taxes. County officials said property owners would get a relief overall from taxes, even with a modest increase to help fund capital projects, like new EMS stations, library and parks. 

"People want to pay for those things," Byars said, adding that provided their overall tax bill was lower. 

The referendum would have to be voted on by residents of the county — a feat that may not have time to make the general election in November. 

The new tax could drop property taxes, like it has in 31 other S.C. counties, Messervy said. As it stands now, any Dorchester County property owner purchasing goods in Charleston or Berkeley County stores is paying for those counties' property tax relief, he added. 

"We're not competing with the county across the street," Messervy said. 

Some of the busiest stores in the area include Lowes and Walmart, both on Dorchester Road, which would help generate revenue for needed capital projects, Messervy said. He added that Dorchester County shoppers may want to seek out county businesses to help fund libraries and EMS stations.

Messervy said that the sales tax wouldn't just shift the burden to businesses or another taxpaying sector of the county, but could provide relief to the burdened property owners in the county.

Dorchester County currently has a one-cent sales tax, but that was generated by a referendum for infrastructure improvement. About $9 million is raised annually by the Dorchester County Sales Tax Transportation Authority. 

According to the 2012 budget, the county acquires more than $46 million annually in tax revenue. About $20 million of the projected tax revenues for 2012 come from real estate taxes. 

Councilman Bill Hearn also favored the one-cent tax, which has been defeated in the past.

"You're voting against it at the ballot box but you're voting for it every time you shop," Hearn said.