The city of Travelers Rest has joined the ranks of municipalities in Greenville County exploring a penny tax to fund capital projects and offer property tax relief to residents. 

Travelers Rest City Council gave initial approval to add a 1% municipal sales tax referendum to the ballot for the November general election on July 14. The item was discussed and advanced by council’s Ways and Means Committee earlier Monday night. 

The proposed sales tax would add an extra penny to every dollar spent on eligible retail purchases in the city, exempting most groceries, prescription medicine or gasoline. 

Travelers Rest City Administrator Shannon Herman said the penny tax would generate an estimated $19.8 million for the city over the next eight years. Approximately 61% of the tax revenue is expected to come from visitor spending. 

“Sales tax is different than property tax,” Herman said. “Property tax is paid by homeowners only. It does not capture tourism and it does not grow with tourism. A municipal sales tax allows both residents and visitors to pay into the pot.”

A minimum of 20% of the generated tax revenue – nearly $4 million – must be used for property tax relief for owner-occupied homes in the city. Herman said the average homeowner in Travelers Rest with a home valued at $324,500 is estimated to see a tax rebate of approximately $360 annually. 

Travelers Rest proposes utilizing the remaining $15.8 million of tax revenue to fund 29 capital improvement projects. The tax revenue would specifically go towards:

$4.9 million for parks and recreation projects
$3.9 million for sidewalk and trail connectivity projects
$3.1 million for roads and traffic projects
$2.6 million for parking projects
$1.3 million for stormwater infrastructure projects

Several of the proposed projects would enhance the city’s park system, specifically Gateway Park and Trailblazer Park. Greenville County transferred ownership of both parks to the city of Travelers Rest in late 2025. Future improvements for the parks were identified during the recent development of the Travelers Rest Parks Master Plan, currently being finalized. 

“Parks is a primary concern of council,” said Travelers Rest Mayor Brandy Amidon. “We appreciate the county’s donation to us for Gateway Park and Trailblazer, but it did not come with any money.”

The city has proposed using penny tax revenue to add a skatepark, a feature playground, pickleball courts, a sidewalk loop, stadium seating and improved parking at Gateway Park. At Trailblazer Park, tax revenue would go towards adding a retention pond with walking trails, a splash pad, pickleball courts, stadium seating, sidewalks and parking. 

Other projects proposed to receive penny tax revenue include renovating Old Buncombe Road, improving the traffic circle at Little Texas Road and adding multiple connections to the Prisma Health Swamp Rabbit Trail.

What’s next?

Travelers Rest City Council will hold a workshop and public hearing regarding the penny tax ordinance and proposed project list on Aug. 6. The second and final reading on the ordinance is expected to take place on Aug. 10. 

Conversations surrounding a penny tax stems from the South Carolina General Assembly’s passage of the Municipal Tax Relief Act in May. The new state law extends the authority to impose a 1% local sales tax to cities located within a county that has not enacted a penny tax. 

South Carolina has three counties without a local sales tax: Greenville, Oconee and Beaufort. Greenville County most recently failed to pass a capital projects sales tax in the 2024 general election.

Along with Travelers Rest, the cities of Greenville, Simpsonville and Mauldin are considering penny tax proposals. Greenville County has also taken steps to add its own local sales tax referendum to the November ballot. 

It’s important to note that if voters approve both a county and a city penny tax, all qualifying purchases in the city of Travelers Rest would see a 2-cent-per-dollar sales tax. 

All governing bodies wishing to bring a local sales tax proposal before voters in November must adopt an ordinance to submit a referendum to the Greenville County Voter Registration and Election Board by Aug. 17.