Municipal Tax Relief Act.
A Proposed 1% Municipal Sales Tax for Street Infrastructure Improvements
On August 11, 2026, Simpsonville City Council adopted an ordinance placing a referendum on the November 3, 2026 ballot. The referendum will ask Simpsonville voters whether to approve a limited-time, special-purpose 1% municipal sales and use tax.
If approved by voters, the tax is projected to generate revenue for citywide street infrastructure improvements and provide property tax credits to qualifying homeowners.
The tax would last for no more than eight years and would automatically expire at the end of that period.
Download the following documents for additional information:
What Is Being Proposed?
A state law passed in 2026, the Municipal Tax Relief Act, allows qualifying municipalities to ask voters to approve a special-purpose sales tax of up to 1% for a period of up to eight years.
City Council adopted the implementing ordinance on August 11, 2026. If voters approve the referendum, the revenue would be used for the purposes specified in the ordinance and ballot question, including street infrastructure improvements and property tax credits for qualifying homeowners.
1%
Proposed addition to the city sales tax rate
8 Years
Maximum duration before automatic expiration
$44.4M
Authorized for citywide street infrastructure improvements
20%
Minimum share of revenue used for qualifying homeowner property tax credits
If approved by voters, the program would provide funding for resurfacing, drainage, curb and gutter, and sidewalk work on approximately 39 miles of city streets, based on current project estimates.
Why Is This Being Considered? The Municipal Tax Relief Act allows qualifying municipalities to ask voters to approve a special-purpose municipal sales and use tax under specified conditions. A city council in a county that does not impose a tax pursuant to any law enacted by the General Assembly as of January 1, 2026 may impose a sales and use tax not to exceed one percent by ordinance subject to a referendum, within the municipality for a specific purpose or purposes and for a limited amount of time. Simpsonville qualifies under the Act.
Under the Municipal Tax Relief Act, the revenue may be used for property tax credits and qualifying infrastructure projects. Simpsonville meets the statutory requirements to use this provision.
What It Means for You
Simpsonville’s sales tax rate is currently 6%. If voters approve the referendum, the rate within city limits would increase to 7% on taxable purchases.
The tax would apply to taxable purchases made within city limits. Certain goods and services are exempt from sales and use tax under state law. The examples below are general and are not an exhaustive list; taxability is governed by state law and South Carolina Department of Revenue rules.
Examples of qualifying purchases generally not subject to the additional 1%
Residential rent and mortgage payments
Residential electricity and fuels
Gasoline and other motor fuel subject to the motor fuel user fee
Unprepared food
Prescription medicines and other purchases exempt from state sales and use tax
Examples of purchases generally subject to the additional 1%
Prepared food
Retail & home goods
Other taxable purchases
For every $1,000 in taxable purchases, the additional 1% would result in approximately $10 in additional sales tax.
The City estimates that approximately $30 million, or about 55% of projected sales tax revenue, would come from people who do not live in Simpsonville, including visitors and shoppers from outside the City.
Property Tax Credits for Homeowners If voters approve the referendum, qualifying homeowners would receive a property tax credit as provided by state law.
The credit would be applied against qualifying municipal property-tax liability. The City estimates that the credit for the median homeowner would be approximately $171 per year.
The actual amount would vary based on the property’s qualifying value under state law and the amount of sales-tax revenue allocated to the credit for that year.
Only qualifying owner-occupied residential property would be eligible for the credit. Rental property does not qualify. The credit applies only to qualifying owner-occupied residential property under state law.
What Happens Next?
City Council adopted the implementing ordinance on August 11, 2026. The referendum will be presented to Simpsonville voters on November 3, 2026.
If voters approve the referendum, the tax would take effect on May 1, 2027. State law provides for quarterly distributions to the City. Staff currently expects the first distribution in August 2027.
The tax imposed by O-2026-08 would end on April 30, 2035. Any future reimposition would require compliance with state law and voter approval.
The ordinance establishes financial controls, project prioritization, and implementation procedures for governing the program. The City commits to providing regular public updates on the project.
Below is an online map of proposed street projects by type. Each color represents a different category of work. For example, green indicates repaving accompanied by curb and gutter, drainage, and sidewalk improvements.
Two Sales Tax Referenda on the November 3 Ballot
Simpsonville voters will see two separate 1% sales and use tax referenda on the November 3, 2026 ballot:
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- City of Simpsonville: A municipal tax for the purposes specified in the City’s ordinance, including citywide street infrastructure improvements and property tax credits for qualifying homeowners.
- Greenville County: A countywide transportation tax for the purposes specified in the County’s ordinance.
The two referenda are separate. If both are approved and both taxes are imposed, the combined sales tax rate within Simpsonville would be 8% on taxable purchases.
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The Greenville County referendum is a separate countywide measure; Greenville County Council’s ordinance provides for a 1% sales and use tax subject to referendum approval.
Frequently Asked Questions
About the Referendum
What is this referendum?
The referendum will ask Simpsonville voters whether to approve a 1% municipal sales and use tax for no more than eight years under the South Carolina Municipal Tax Relief Act.
On August 11, 2026, City Council adopted the ordinance authorizing the referendum.
If approved by voters, the revenue would be used for the purposes specified in the ordinance and ballot question, including property tax credits for qualifying homeowners and citywide street infrastructure improvements.
When is the referendum?
The referendum will be held on November 3, 2026.
What will voters see on the ballot?
The ballot question will read:
Must a one percent sales and use tax be levied in the City of Simpsonville, South Carolina for no more than eight years for the purpose of allowing a credit against certain municipal ad valorem tax liability and for the purpose of raising the amount specified for the following purpose?
$44,400,000 for citywide road infrastructure improvements, including repaving, drainage systems, curbs and sidewalks
Voters will then vote YES or NO.
Why doesn't the ballot list all 141 projects?
The ballot question identifies the authorized purpose and amount of the program rather than listing each individual project.
The project list is available separately for public review.
Is this a new tax?
Yes. If approved by voters, the Simpsonville referendum would add a temporary 1% municipal sales and use tax within Simpsonville’s city limits.
Simpsonville’s current sales tax rate is 6%. If the Simpsonville referendum is approved and imposed, the rate would increase to 7% on taxable purchases.
A separate 1% Greenville County transportation sales tax referendum is also scheduled to appear on the November 3, 2026 ballot. If both referenda are approved and both taxes are imposed, the combined rate within Simpsonville would be 8% on taxable purchases.
The Simpsonville tax would end on April 30, 2035. The County measure has separate termination provisions under the County’s ordinance.
Can the City increase the tax later?
No. The City cannot unilaterally increase the referendum’s 1% rate.
Any additional sales tax authority would have to comply with applicable state law and any required voter approval.
About the Two Sales Tax Referenda
Will there also be a Greenville County sales tax referendum on the ballot?
Yes. Greenville County Council has authorized a referendum on a 1% countywide transportation sales and use tax for the November 3, 2026 election. County Council’s ordinance provides for a countywide referendum on the imposition of the tax and identifies the purposes and projects for which the proceeds may be used.
The County referendum and the Simpsonville referendum are separate measures.
The Simpsonville referendum concerns a municipal sales and use tax for the purposes described in the City’s ordinance and ballot question. The County referendum concerns a separate countywide transportation program.
Because Simpsonville is located within Greenville County, the County referendum would also apply within Simpsonville if approved by county voters.
Would the two taxes be added together?
Yes, if both referenda are approved and both taxes are imposed.
Simpsonville’s current sales tax rate is 6%. If both the City and County 1% sales taxes are approved and imposed, the combined sales tax rate within Simpsonville would be 8% on taxable purchases, subject to applicable state and local tax exemptions.
In that circumstance:
- 6% — current sales tax rate
- 1% — Simpsonville municipal sales tax
- 1% — Greenville County transportation sales tax
- 8% — combined rate
If only one of the two referenda is approved, the applicable rate would increase by 1% to 7%.
Are the City and County taxes for the same purpose?
No. The two referenda are separate and would fund separate programs administered by different governmental entities.
The Simpsonville referendum would provide funding for the purposes specified in the City’s ordinance and ballot question, including citywide street infrastructure improvements and property tax credits for qualifying homeowners.
The Greenville County referendum would provide funding for the countywide transportation program specified by the County.
Can I vote for one referendum and against the other?
Yes. The two referenda are separate ballot questions. Voters may vote YES or NO on each referendum independently.
About the Tax
When would the tax begin, if approved?
If voters approve the referendum, the tax would take effect on May 1, 2027.
When would the tax end?
The tax imposed by O-2026-08 would end on April 30, 2035. Any future reimposition would require compliance with state law and voter approval.
Would only Simpsonville residents pay this tax?
No. The tax would apply to taxable purchases made within Simpsonville’s city limits, regardless of where the purchaser lives.
Visitors, commuters, and shoppers from outside Simpsonville would also pay the tax when making taxable purchases within the City.
This is separate from any Greenville County transportation sales tax that may also apply.
How much revenue is projected to come from non-residents?
The City estimates that approximately 55% of projected sales tax revenue could come from people who do not live in Simpsonville, including visitors and shoppers from outside the City.
Based on current projections, that represents approximately $30 million over the life of the program.
Would homeowners receive property tax credits?
Yes. If voters approve the referendum, a portion of the sales tax revenue would be used for non-refundable property tax credits for qualifying owner-occupied residential property.
State law requires at least 20% of the revenue to be used for this purpose.
Who would qualify?
The property tax credit would apply to qualifying owner-occupied residential property, subject to the requirements established by state law.
How much would homeowners receive?
The City estimates that the credit for the median homeowner would be approximately $171 per year.
The actual amount would vary based on the property’s qualifying value under state law and the amount of sales-tax revenue allocated to the credit for that year.
Would renters receive the property tax credit?
No. Rental property does not qualify. The credit applies only to qualifying owner-occupied residential property under state law.
How does this compare to traditional street funding?
The City’s existing street funding is provided through its annual budget and other available funding sources.
The proposed sales tax would provide a separate, temporary source of revenue for the street infrastructure improvements authorized through the referendum.
Based on current project estimates, approximately 39 miles of streets are included in the proposed resurfacing program.
About the Street Infrastructure Improvements Program
How much would be invested in street infrastructure improvements?
The ordinance authorizes $44.4 million for citywide street infrastructure improvements, including repaving, drainage systems, curbs, and sidewalks.
What kinds of street infrastructure improvements are included?
Projects include:
- Street resurfacing
- Drainage improvements
- Curb and gutter improvements
- Sidewalk improvements
- Other associated street infrastructure improvements
How many projects are on the list?
The proposed program includes 141 projects, organized into three implementation tiers.
Where can I see whether my street is included in the proposal?
The City’s online project map and Project List show the proposed projects and their locations.
How were the projects selected?
Projects were identified and prioritized using factors including pavement condition, infrastructure needs, public safety, connectivity, project scope, and available information regarding the condition of the City’s street network.
Why aren't all streets included?
The City maintains approximately 90 miles of streets. The proposed program has a defined funding amount and includes 141 projects based on the City’s current assessment of street and infrastructure needs.
Other streets may require improvements that are not included in the proposed program.
Project Prioritization and Implementation
How are projects prioritized?
The ordinance establishes procedures for prioritizing and implementing projects within three project tiers.
Projects are assigned to three funding tiers in Exhibit A to O-2026-08, with Tier 1 as the highest priority. Higher-priority tiers are funded before lower-priority tiers except as specifically allowed by Section 2.03(b) and (c) of the ordinance.
Would all Tier 1 projects be completed before Tier 2 begins?
Not necessarily.
Once construction contracts have been let for 70% of all projects in a funding tier, the City may begin spending sales-tax proceeds on projects in the next tier. The ordinance also allows certain procurement, project-management, right-of-way and pre-construction expenditures for projects in the next tier.
Can a lower-tier project proceed before every higher-tier project is funded?
Yes, but only through the process established by O-2026-08. Upon a written request from the City Administrator, City Council may, by ordinance, authorize a lower-tier project to proceed earlier if the findings required by Section 2.03(c) are made.
Those findings may include a delay or impracticality affecting a higher-tier project or partial grant or other funding that allows the lower-tier project to proceed ahead of schedule.
Would the City complete every project on the list?
The project list identifies the City’s proposed program. Actual project implementation would depend on factors including revenue collections, construction costs, project conditions, grant funding, project readiness, and other circumstances.
Projects would be implemented in accordance with the City’s adopted procedures and priorities.
Would construction begin immediately after voter approval?
No. If voters approve the referendum, the tax would take effect on May 1, 2027. Projects would then be implemented according to the City’s adopted procedures and project priorities.
Some projects may require engineering, design, permitting, right-of-way work, bidding, or other preparation before construction can begin.
Can grants reduce local costs?
Yes. The City may pursue state, federal, county, or other grant funding for eligible projects.
Grant funding may supplement sales tax revenue for eligible projects.
What happens if revenue is lower than expected?
Project implementation would be based on the revenue actually collected.
If collections are lower than projected, the City may adjust the timing, scope, or number of projects implemented.
What happens if construction costs increase?
Project implementation would be based on available revenue and the City’s established project priorities.
If construction costs increase, the City may adjust project schedules, scopes, or priorities.
Financial Controls and Accountability
Can the City spend the money on other projects?
Generally, no. Sales-tax proceeds must be used in accordance with state law, the voter-approved referendum, and O-2026-08. State law separately governs the use of any excess proceeds remaining after the approved projects are funded.
Would the money be kept separate?
Yes. O-2026-08 requires all sales and use tax proceeds to be deposited into a separate City account and not commingled with other funds.
The City would track revenue and expenditures associated with the program and provide public reporting regarding its use.
How would residents be kept informed?
The City intends to provide regular public updates covering:
- Sales tax collections
- Property tax credits
- Projects under design
- Projects under construction
- Completed projects
- Project expenditures
- Remaining work
The City would also provide public information regarding the implementation and financial status of the program.