The Charleston County transportation sales tax is a half-cent (0.5%) local sales tax that voters authorized to pay for road work, public transit, greenbelt preservation, and bicycle and pedestrian projects. Stacked on top of South Carolina’s 6% state rate and other local taxes, it brings the total sales tax rate in Charleston County to 9%.1South Carolina Department of Revenue. Sales and Use Tax Index Since it was first approved in 2004, the tax has generated more than $4.5 billion for transportation. Its future is now unsettled: voters rejected a renewal in November 2024, and County Council is preparing a fresh proposal for a 2026 vote.
Where the Money Goes
Revenue is split across four buckets: roads and bridges, public transit, greenbelt preservation, and bike and pedestrian improvements.2Charleston County. Transportation Sales Tax Special Committee Begins Work, Seeks Community Input on Future Investments County Council runs an annual allocation program of roughly $9 million a year, broken into resurfacing ($4 million), local paving ($2 million), intersection improvements ($2 million), rural roads ($2 million), and bike and pedestrian projects ($1 million).3Charleston County. Funding That yearly slice is small compared to the larger share that funds major capital projects taking years to design and build.
About a quarter of the half-penny funds go to CARTA, the region’s bus and paratransit provider. The single biggest transit investment is the Lowcountry Rapid Transit project, a bus rapid transit line that has received roughly $250 million in local sales tax funding through bond proceeds and direct contributions.4Federal Transit Administration. Lowcountry Rapid Transit Project – Charleston, SC Roughly 40% of the project’s capital funding comes from local sales tax revenue, which is what made it competitive for federal Capital Investment Grants.
A transportation tax paying for greenspace surprises people, but it’s real. The Charleston County Greenbelt Program has protected nearly 28,856 acres of natural areas, parks, and open space using half-cent revenue.5Charleston County. Charleston County Greenbelt Program The reasoning is that preserving undeveloped land shapes growth patterns and reduces demand for new road infrastructure in areas that would otherwise sprawl. The program also funds parks and trails that serve as non-motorized transportation.
What Actually Gets Taxed
Here is the part that catches Charleston County shoppers off guard. Unprepared food — groceries — is exempt from South Carolina’s 6% state sales tax, but that exemption does not automatically extend to local sales and use taxes unless the specific local tax law says so.6South Carolina Department of Revenue. Unprepared Food Exemption Your grocery bill in Charleston County therefore carries the local tax even though the state portion doesn’t apply.7South Carolina Department of Revenue. Chapter 9 – Exemptions
Prescription medications are fully exempt from both state and local sales tax under South Carolina Code Section 12-36-2120(28).8South Carolina Legislature. South Carolina Code 12-36 – Sales and Use Tax Restaurant meals are fully taxable at the combined 9% rate because prepared food doesn’t qualify for the grocery exemption at either level.
The half-cent also applies as a use tax on things you buy out of state and bring back to Charleston County to use, store, or consume.9South Carolina Legislature. South Carolina Code 4-37 – Optional Methods for Financing Transportation Facilities If an online retailer doesn’t collect South Carolina sales tax on your purchase, you owe the equivalent use tax, local portion included. Both registered businesses and private individuals are required to report and pay it, and taxpayers have to identify the county of use so the Department of Revenue allocates the local share correctly.10South Carolina Department of Revenue. Use Tax
The 2024 Vote and the 2026 Proposal
Charleston County’s first half-cent transportation tax was authorized in 2004 and began collecting in 2005. Voters approved a second half-cent in 2016. The 2004 tax is expected to expire around 2030–2031, once its revenue target is reached.3Charleston County. Funding
To replace the expiring 2004 tax, Charleston County put a new referendum on the November 2024 ballot. The proposed ordinance would have authorized a fresh 0.5% tax for up to 25 years with a $5.4 billion revenue cap, collections beginning May 1, 2030 or when the 2004 tax finished collecting, whichever came first.11Charleston County. Transportation Sales Tax Ordinance Voters rejected it. The 2016 tax keeps collecting, but the 2004 revenue is already fully committed to approved projects.
Council moved quickly. In 2026, it passed first reading of a new transportation sales tax ordinance to send another question to voters.12Charleston County. Charleston County Council Passes First Reading of 2026 Transportation Sales Tax Ordinance A special committee has been collecting community input on how the next proposal should be structured, with early estimates around $4.25 billion in revenue over 25 years.2Charleston County. Transportation Sales Tax Special Committee Begins Work, Seeks Community Input on Future Investments State law requires the referendum to be held during a general election, so November 2026 is the earliest possible vote.9South Carolina Legislature. South Carolina Code 4-37 – Optional Methods for Financing Transportation Facilities
Legal Limits on How the Money Is Spent
South Carolina Code Title 4, Chapter 37 lets counties impose a sales and use tax of up to 1% for transportation, but only with voter approval at a general election. The statute caps the duration at 25 calendar years and requires collection to stop automatically once enough revenue is raised to cover the approved projects, even if the 25-year clock hasn’t run out. Any revenue collected above that specified amount goes to reducing the county’s transportation infrastructure debt, not to new projects.9South Carolina Legislature. South Carolina Code 4-37 – Optional Methods for Financing Transportation Facilities
Counties are required to conduct annual audits verifying that the revenue is collected, reported, and distributed properly.13South Carolina State Treasurer. Audit Information Spending has to line up with the project list from the original referendum ordinance, and Charleston County publishes project scoring, allocations, and progress updates through its transportation website.14Charleston County Transportation. Public Input – Charleston County Transportation Projects are ranked on a 100-point system that weighs public and municipal support, congestion relief, safety, and consistency with Council’s guiding principles.