Lexington County Council Explores Penny Tax Proposal for 2026 Amid Growing Infrastructure Needs

Lexington County Council Considers Penny Tax for 2026

Lexington County, SC – A potential penny tax could be making a comeback on the ballots for the year 2026, and there’s a lot to unpack here! As our beloved Lexington County keeps growing, it’s becoming increasingly clear that we need to step up and address our infrastructure challenges. The County Council is gearing up to tackle this head-on, but there’s a big question that’s been lingering: how do we pay for it all?

Growth Brings Challenges

In case you haven’t noticed, Lexington County has seen explosive growth over the last decade. From 2010 to 2020, our population surged from 262,391 to 293,991. That’s nearly a 12% increase! With more folks moving here, our roads and public facilities are starting to show the strain, and it’s time for some serious improvements.

Even though the idea of a penny tax isn’t new—having been rejected by voters in 2014 and 2022—County leaders are convinced it’s the sensible route to take this time around. The penny tax would raise the county’s sales tax by just 1 percent. This might not sound like much, but imagine the potential! The 2022 proposal was estimated to generate over $500 million in revenue over eight years, which could go a long way toward fixing our roads and improving out-of-date infrastructure.

The Road Ahead: Challenges and Opportunities

During a recent County Council committee meeting, the discussion centered on bringing the penny tax back for 2026. Vice Chairman Darrell Hudson was vocal about the need for the tax, stating, “It’s the only common-sense approach to fix our dilemma.” If we don’t act on this, the council warns that these infrastructure challenges will only get worse.

On top of the penny tax, the council is also exploring other revenue sources, including a proposed vehicle fee of $30 for all registered cars in the county. This plan was tentatively passed in March and could generate around $8.7 million annually. However, Hudson emphasized that the vehicle tax is merely a “temporary fix” when compared to what the penny tax can actually bring in. If the penny tax is approved, the vehicle fee is set to expire by the end of 2026.

Lessons from the Past

Looking back, the 2014 attempt at the penny tax was met with hearty resistance. Voters rejected the tax by a wide margin—70% to 30%. The proposed funds for that initiative included a mix of road repairs, parks, and walking paths, which drew criticism from some corners. Fast forward to 2022, the penny tax proposal focused solely on road repair and traffic improvement but was again voted down, albeit by a closer margin of 54.64% to 45.36%. Clearly, there’s work to be done to understand what the community wants and needs.

Future Prospects

As the council considers placing the penny tax back on the ballot, they have also taken note of what neighboring counties are already doing. Surrounding areas such as Richland, Saluda, Orangeburg, Aiken, Calhoun, and Newberry have successfully implemented a penny tax. With about $500 million worth of road work projects needed in the coming decade, the time for action is now.

This isn’t just a conversation about taxes; it’s about the future of our community. The South Carolina Department of Transportation has already identified our needs and is currently focusing on interstate and bridge improvements. The state recently allocated $200 million in additional funding for this aim, but the responsibility for other road improvements falls largely on our county council.

While the Council has started the process to potentially place the penny tax on the 2026 ballot, they still need to officially approve the formation of a commission, work out project details, and finalize the dollar amount the tax would bring in. Community input will be essential in shaping what comes next.

As we look forward to what the future holds for Lexington County, it’s clear that residents will have an opportunity to weigh in on these important issues in the upcoming years. Let’s stay engaged and be part of the conversation!