Penny Tax Overview
Beaufort County is experiencing significant population growth, placing increased demand on transportation infrastructure across the region. In response, the County Council established the 2026 Transportation Advisory Committee to evaluate community needs and develop recommendations for potential transportation investments. The Committee reported back to Council with their recommendation, which Council has moved forward to the ballot as Ordinance 2026/30.
If approved, the measure would tax 1% of most retail purchases (excluding medication, gas, rent and mortgages, utilities, and unprepared foods/groceries) to collect $780 million over the course of nine years. The tax would end when the nine years end, or when the full amount is collected, whichever occurs first.
Purpose of the Initiative
The proposed Transportation Sales Tax is intended to fund critical infrastructure improvements that support safety, mobility, and connectivity throughout Beaufort County. The proposed project list includes roadway expansions, intersection improvements, resurfacing, and paving projects aimed at addressing current and future transportation demands.
The funds raised by the Penny Tax goes towards specific, voter-approved projects as shown on the ballot question. This referendum targets improved safety at traffic intersections, road-widening projects, and road resurfacing.
Current Status
The Council has now approved the Ordinance and the referendum will appear on the 2026 Ballot. A second ballot question authorizing bonding to begin projects more quickly is also included. The amount bonded is not an additional tax, nor does it add to the total collection.
More detailed information about the proposed projects, FAQs, and additional resources can be found in the sections below.
About the Proposed 2026 Referendum
What is the “Penny Tax” and what does it pay for?
It’s the common nickname for the proposed 2026 Transportation Sales and Use Tax Referendum. If approved by voters, it would add a one-cent (1%) sales tax to fund a defined list of transportation projects across Beaufort County.
This tax must be approved by voters through a referendum and would be no more than nine years — with a stated sunset date of 2034 — or until approximately $780 million in revenue is collected, whichever comes first.
What would voters actually decide on the November 2026 ballot?
Two related measures:
Question 1 asks voters to approve a one-cent sales tax, in effect for no more than nine years — with a stated sunset date of 2034 — or until approximately $780 million in revenue is collected, whichever comes first. These funds go towards specific, voter-approved projects. Beaufort County has circled improvements for safety at traffic intersections, road widening, and resurfacing as projects for this tax.
Question 2 asks voters to approve related general obligation bonds of up to $450 million, payable from the sales tax, to help fund completion of the transportation projects. This would allow design and construction of projects to begin sooner
How would this change the sales tax rate residents and shoppers pay?
Beaufort County’s current combined sales tax rate is 6% (the state’s 6% base rate, with no additional county tax currently in effect following the County’s Green Space Sales Tax expiring on March 1, 2025). If the 2026 measure is approved, the rate would rise to 7% within the county.
How is a sales tax different from a property tax?
A property tax is assessed based on the value of property owned and is paid only by property owners. A sales tax is generated from retail purchases, meaning the cost is shared by both residents and visitors who shop in the county — not property owners alone.
Who would pay this tax?
Anyone making a taxable retail purchase within Beaufort County — including full-time residents, part-time or seasonal residents, commuters, and visitors.
What would I be taxed on?
The sales tax would be levied on most retail purchases, with some exceptions. The exceptions include rent and mortgage payments, gas, unprepared foods, and medical prescriptions and supplies.
What projects would the penny tax funds go towards?
The nine-year Transportation Sales Tax program is estimated to generate approximately $780 million in revenue for these projects. They will be organized into three primary categories:
- Safety and Intersection Improvement Projects: $326 million
- Road Widening Projects: $205 million
- Resurfacing and Dirt Road Paving Projects: $249 million
Highlighted projects include $14.4 million towards improvements to the intersection of Squire Pope and William Hilton Pkwy, a $4.8 million turn lane at Ribaut Road and Lady’s Island Drive, and $103.8 million to widen SC 170 from US 278 to SC 462.
These projects are intended to address major capacity and mobility needs in high-growth corridors and areas of Beaufort experiencing significant transportation demand. A full list of the planned improvements can be found here.
Who developed the proposed project list?
The 2026 Transportation Advisory Committee (TAC) — 15 Beaufort County residents appointed under County Council Resolution 2025/70, representing all 11 County Council districts plus the City of Beaufort, Town of Port Royal, Town of Bluffton, and Town of Hilton Head Island. The Committee’s recommendations were submitted to County Council, which is scheduled to vote on accepting the proposal on May 26, 2026.
What happened with the 2024 transportation tax referendum?
In November 2024, Beaufort County voters considered a similar transportation sales tax referendum, originally proposed at $950 million over 10 years. It was not approved. County Council subsequently established the 2026 Transportation Advisory Committee to review community transportation needs and develop a new proposal.
Where can residents find official, up-to-date information or ask a question?
The County’s official Penny Tax website (beaufortcountypenny.com), which includes the full FAQ, ballot language, the itemized project list, and the interactive “Potential 2026 Sales Tax Projects” map, along with the campaign’s question submission form for questions not yet covered.
About the 2018 Transportation Sales Tax & Its Projects
What was the 2018 Transportation Sales Tax?
In 2018, Beaufort County voters approved a one-cent transportation sales tax, which took effect May 1, 2019. As structured, it was set to run until it raised $120 million or for four years, whichever came first.
What did the 2018 tax fund?
Roughly $80 million for improvements along the US 278 corridor to Hilton Head Island, $30 million for Lady’s Island-area improvements, and $10 million for sidewalk and multi-use pathway projects.
What’s the status of the 2018 Sales Tax Projects?
Beaufort County is committed to finishing the majority of the scheduled transportation projects by the end of 2028. As of the most recent public update, the County is committed to completing the majority of scheduled 2018 projects by the end of 2028, with the exception of the US 278 Corridor Project — which will replace aging Hilton Head Island bridge spans to improve safety and hurricane evacuation reliability — targeted for completion by 2031.
Of the projects remaining, 44% are in design, 33% are in right-of-way acquisition, and 22% are under construction. Two projects are under construction or recently completed, four additional projects are scheduled to break ground in 2026, and 9 remaining pathway projects are set to be complete by 2028. By the end of 2026, all remaining projects are expected to have entered the Right-of-Way acquisition phase.
Why have some 2018 projects taken longer than expected to complete?
While we know these timelines seem far away, it’s important to note that infrastructure projects take a long time to develop. Even the most straightforward projects (such as pathways) have the same steps of design, permitting through state and federal agencies, property acquisition and utility coordination.
Beaufort County’s collection time is much faster than the implementation time for most projects. The Boundary Street Improvement project was completed 13 years after the 2006 sales tax began and 7 years after the collection finished.
Are the 2018 and proposed 2026 taxes the same funding source, or separate?
They are separate, legally distinct funding measures with their own project lists and timelines. Some proposed 2026 projects are described as supplementing work in corridors that also received 2018 funding — for example, further US 278 corridor improvements — but the funding sources themselves are not merged or interchangeable.
How can residents check the status of a specific 2018 project?
The County maintains a projects page listing all 2018-referendum projects, including design teams, current phase, and status updates, refreshed periodically as work progresses.
November 03, 2026
Election Day
August 15, 2026
State Notification Deadline
August 15, 2026
July 13, 2026
Third Reading of Ordinance
June 22, 2026
Second Reading of Ordinance
June 22, 2026
June 8, 2026
First Reading of the Ordinance
May 26, 2026
Resolution to Accept TAC Recommendations
May 26, 2026
May 11, 2026
Council Discussion
County Council will meet to discuss the recommendations from the Transportation Advisory Committee.
May 6, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will hold its final working meeting before recommendations are due to County Council.
Watch the meeting on BCTV. We’ll update the link here as soon as it’s available.
May 6, 2026
April 22, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will meet to hear from the community and have a working meeting.
Watch the meeting on BCTV. We’ll update the link here as soon as it’s available.
April 1, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will meet to hear from the community and have a working meeting.
Watch the meeting on BCTV. We’ll update the link here as soon as it’s available.
April 1, 2026
March 18, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will meet in Beaufort for a municipal needs presentation and working meeting.
Watch the meeting HERE on BCTV.
March 11, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will meet in Hilton Head for a municipal needs presentation and working meeting.
Watch the meeting HERE on BCTV.
March 11, 2026
March 4, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will meet in Bluffton for a municipal needs presentation and working meeting.
Watch the meeting HERE on BCTV.
February 25, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee will meet in Port Royal for a municipal needs presentation and working meeting.
Watch the meeting HERE on BCTV.
February 25, 2026
February 18, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee met to discuss the Lowcountry Area Transit Study and begin exploring county needs.
February 4, 2026
Transportation Advisory Committee Meeting
The Transportation Advisory Committee met to receive a program history and nominate leadership.
February 4, 2026
January 2026
Transportation Advisory Committee Established
