Federal funds are administered through the SCDOT. Counties only receive a small portion of the federal funds as a majority of the funds will be used by SCDOT for major interstates and other State-maintained infrastructure projects. 

In short, the federal funds primarily prioritizes SCDOT interstates and bridges, not County-maintained roads and other infrastructure.

If a road is maintained by SCDOT, its repair and maintenance would typically fall under state responsibility, and the Penny Tax cannot be used for state-managed projects unless there is a specific agreement or partnership between the county and SCDOT to fund such improvements. The funds from the Penny Tax must be applied to projects approved at the county level through a referendum, and those typically cover local roads and not state highways or roads managed by SCDOT.

To find out if a road is maintained by SCDOT and to file a maintenance request please visit https://apps.scdot.org/mwro/

The roads to be paved are determined based on several factors, including residential densities, the county's responsibility to maintain certain roads, and the need to address flooding issues. For example, roads that are prone to flooding or frequent maintenance due to weather conditions, like Goodman Road in Shiloh, are prioritized. This road was a good candidate for the Penny Tax funding because it required constant upkeep whenever it rained. After being included in the Penny Tax proposal, it was successfully passed and paved to address these issues.

• Revenue Collection and Distribution:

  • The South Carolina Department of Revenue (DOR) collects the Penny Tax and deposits it with the State Treasurer. The funds are held separately from the state's general fund.

  • The State Treasurer distributes the tax revenues quarterly to the county treasurer of Sumter.

• Commission Oversight:

  • A commission created by the county government, composed of six residents (three appointed by the county and three by municipalities), formulates the referendum question and oversees the selection of projects.

• Use of Funds:

  • The county treasurer certifies how the funds are applied to specific projects, reporting the amount spent and any remaining costs.

  • Any funds remaining after projects are completed must either be used for new voter-approved projects or refunded in accordance with legal guidelines.

No, by law Sumter cannot use the Penny Tax for programs, services, trainings, or other social services. The Capital Project Sales Tax (Penny Tax) is specifically designed to fund capital projects, which means it can only be used for building or improving physical infrastructure, such as roads, government buildings, recreational facilities, and utilities (like water and sewer systems).

When capital projects (such as building roads, police stations, fire stations, or recreational centers) are funded through the Penny Tax, it reduces the need to use money from the general fund for those projects.

The general fund, which is often used to finance ongoing services like police training, youth programs, or rehabilitation services, can then be allocated to those operational needs because the capital project costs are covered by the Penny Tax.

Similarly, the Penny Tax can be used to build recreational centers, which can then be used by non-profits or county departments to run youth programs.

Some grants or funding programs (such as federal or state grants) require local governments to provide a matching contribution. The Penny Tax revenue can be used for the infrastructure portion of these grants (e.g., building a community center), allowing the county to qualify for these external funds that might go toward the operational aspect (e.g., running youth or rehabilitation programs).

By having ready funds from the Penny Tax, the county can act quickly to apply for and leverage these additional funding opportunities that directly support programs and services.

Purchases that are exempt include but are not limited to: unprepared foods (such as some groceries), gasoline, and prescriptions.

If passed the penny tax will begin on May 1, 2025 and last for no more than 8 years.