Will Horry County residents pay more to shop? Officials say higher tax worth it

Shopping in Horry County could get a bit more expensive as leaders mull a new sales tax.

A county ordinance proposes a referendum to vote on a 1% local option sales tax. Proponents say the measure would offer residents property tax relief by sharing the costs of local government services with tourists, who also benefit from the services.

“What’s unique to Horry County is we produce 27% of all visitor spending in the state, so this would be our visitors helping share the burden,” Interim County Administrator David Jordan said at Horry County’s spring budget retreat.

The sales tax would apply across all Horry County municipalities for commercial, industrial, personal and real property, which includes vehicles. If the ordinance passes, Horry County will put it to a vote on the Nov. 3, 2026, ballot and, if a majority of voters support it, the tax would be implemented on May 1, 2027. But the measure has a ways to go.

Before the ordinance makes it to an Horry County Council vote, the Administration Committee will vote on whether to recommend the matter. But in a Monday meeting, the Administration Committee tabled the ordinance. It’s unclear when the topic will be discussed again.

Since South Carolina first gave counties the option to put local option sales taxes on the ballot in 1990, the possibility has been shot down twice by Horry County voters, once in 1992 and again in 2001.

How would the new Horry County sales tax work?

With both a transportation tax and an education capital improvement, Horry County currently has an 8% local tax, according to the South Carolina Department of Revenue. An additional 1% tax would make Horry County one of three South Carolina counties – along with Berkeley and Charleston – with a 9% tax rate.

More than 30 South Carolina counties utilize a local option sales tax. Berkeley, Charleston and Jasper counties feature the transportation, education and local option sales taxes.

Under the South Carolina statute, 71% would go to a property tax credit fund and 29% would go to a county/municipal revenue fund. Within the property tax credit, 67% would be allocated to county millage reduction and 33% would go through municipalities based on population percentage.

“The remaining 29% is general fund revenue,” Jordan said. “It can be used for additional tax relief, it can be used to ensure we don’t have a millage increase.” Half of that 29% is to be utilized in the collection location and half is to be utilized based on population percentage.

Will Horry County residents benefit?

In order to maintain the current level of service without the local option, Horry County leaders say the county would need a millage increase.

An Horry County family of four would pay $135.60 to $165.60 more for dining and retail under the proposed tax. But, according to the county, residents stand to gain from the tax credit.

Based on estimates, a household in the Conway tax district of unincorporated Horry County with a $250,000 property and two vehicles each valued at $50,000 could save $174.20 in property taxes annually. The same household in the city of Conway could save $793.

Using Myrtle Beach Area Chamber of Commerce data from the 2024 fiscal year, the local option sales tax would generate $120 million annually. Residents would contribute 46% – that’s $55.2 million – while visitors would account for $64.8 million – or 54%.

Although the sales tax isn’t currently scheduled to appear on its agenda, Horry County Council has until Aug. 15 to approve the ordinance in order for the referendum to appear on the November ballot.