The Capital Projects Sales Tax 5 (CPST 5) will appear on the November ballot for Aiken County residents. This marks the fifth installment of the 1 percent sales tax, often referred to as the 'penny' tax, which initially gained approval from voters in 2000. This initiative is crucial for Aiken County as well as the cities of Aiken, North Augusta, and surrounding municipalities, and deserves affirmative support. CPST5 aims to raise $264 million over a span of seven years from May 2026 to April 2033. Funds will be allocated among Aiken County, its cities, and smaller towns to finance specific projects listed on the ballot. Importantly, these funds are restricted to these projects, ensuring fiscal discipline.
Voters retain the right to evaluate and support or criticize this list, depending on their assessment of its merits. Detailed project listings are available at voteyescpst.com, providing transparency and information for informed decision-making. There are several compelling reasons for renewing this sales tax. To start, CPST5 isn't a new tax. Despite misconceptions circulating on social media, it is not an increase or an additional tax; it remains the same penny-per-dollar tax that has supported local governance for over two decades. Historically, this tax has financed Aiken County's critical infrastructure and services.
Whether it’s a new ambulance, freshly paved roads, or upgraded public facilities like parks and libraries, the CPST has funded these essential services. Before CPST implementation, county services suffered from limited resources; for instance, ambulances often exceeded 400,000 miles, jeopardizing timely responses. The improved capability and reliability of county services, witnessed during emergencies like Hurricane Helene, underscored CPST's significance. The funded roads, emergency vehicles, and the Emergency Operations Center played critical roles in disaster management.
Without CPST5, to continue funding these crucial projects, Aiken County would need to significantly increase property taxes by over $18 million annually. Municipalities would also face similar fiscal challenges. The proposed project list for CPST5 focuses on genuine governmental needs without unnecessary expenditures. In contrast to a property tax-based funding model, CPST benefits extend to the wider community, including visitors contributing significantly to sales tax revenues. This taxation method is economically beneficial as it avoids the high-interest costs associated with property tax-funded borrowing. For example, a $100 project funded by CPST might cost county taxpayers only $75 to $80, with the remainder financed by visitor contributions. If funded through borrowing the cost would effectively double, showing the tax's value.
Over the past 20 years, thanks to CPST, Aiken County has maintained a steady millage rate of about 70 mils, one of the lowest in South Carolina. Moreover, the tax has enabled Aiken County to reduce its general obligation debt by more than 25% since 2016, contributing to a stable and favorable economic climate conducive to job creation and business growth. In contrast, during the 25 years before CPST's introduction, property tax rates in Aiken County tripled. However, in the 25 years since, they have remained relatively stable. CPST effectively raises revenue, stabilizes millage rates, supports economic competitiveness, reduces debt reliance, and benefits from visitor spending.
It equitably collects taxes without the complexity and privacy concerns associated with property taxes, reaffirming its necessity. In essence, CPST is not a new tax implementation but a renewal of a proven, effective structure since its inception in 2001. Thus, I urge you to vote 'yes' for the Capital Projects Sales Tax renewal on Election Day.
