South Carolina H 4008: Impact fee

Bill Text

2025-2026 Bill 4008 Text of Previous Version (Feb. 13, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4008

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY ADDING SECTION 6-1-175 SO AS TO AUTHORIZE THE GOVERNING BODY OF A COUNTY OR 
MUNICIPALITY TO IMPOSE A ONE-TIME IMPACT FEE ON PRIVATE DEVELOPERS FOR EACH NEW 
RESIDENTIAL AND COMMERCIAL UNIT CONSTRUCTED BY THE DEVELOPER WITHIN THE COUNTY 
OR MUNICIPALITY, TO PROVIDE THAT THE FUNDS MAY BE USED ONLY TO FUND THE SOUTH 
CAROLINA GENTRIFICATION TRUST FUND, AND TO PROVIDE THAT DEVELOPERS WHO DEDICATE 
AT LEAST FIFTEEN PERCENT OF THE HOUSING DEVELOPMENT TO LOW-INCOME HOUSING ARE 
EXEMPT FROM THE IMPACT FEE; BY ADDING SECTION 11-11-250 SO AS TO CREATE THE 
"SOUTH CAROLINA GENTRIFICATION TRUST FUND" TO PROVIDE FINANCIAL ASSISTANCE FOR 
RELOCATION TO LOW-INCOME AND FIXED-INCOME INDIVIDUALS, CHURCHES, AND GROUPS 
ADVERSELY IMPACTED AND DISPLACED BY GENTRIFICATION, AND TO PROVIDE THAT EACH 
YEAR THE GENERAL ASSEMBLY SHALL APPROPRIATE FIVE MILLION DOLLARS; AND BY 
AMENDING SECTION 12-6-5060, RELATING TO VOLUNTARY CONTRIBUTIONS MADE BY 
INDIVIDUALS BY MEANS OF THE INCOME TAX RETURN CHECK OFF, SO AS TO ADD THE 
"SOUTH CAROLINA GENTRIFICATION TRUST FUND."

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.A. Article 
1, Chapter 1, Title 6 of the S.C. Code is amended by adding:

 Section 
6-1-175. The governing body of a county or municipality may impose a one-time 
impact fee of at least six percent on a private developer for each new 
residential and commercial unit constructed by the developer within the county 
or municipality. The fees must be paid to the county or municipality before or 
at the issuance of a certificate of occupancy for the unit. These fees must be 
deposited in the South Carolina Gentrification Trust Fund and may be used only 
for the purposes set forth in Section 11-11-250. However, if a developer 
dedicates at least fifteen percent of the housing development to low-income 
housing, he is exempt from the impact fee. The low-income housing must remain 
low income for one hundred years.

B. This section takes effect upon 
approval by the Governor and applies to any new residential or commercial 
construction which has not been issued a certificate of occupancy.

SECTION 2. Article 1, Chapter 11, Title 
11 of the S.C. Code is amended by adding:

 Section 
11-11-250. There is created the "South Carolina Gentrification Trust Fund." 
This fund is separate and distinct from the general fund of the State and all 
other funds. Earnings on this fund must be credited to it and any balance in 
this fund at the end of a fiscal year carries forward in the fund in the 
succeeding fiscal year. Beginning with Fiscal Year 2025-2026, each year the 
General Assembly shall appropriate five million dollars to the South Carolina 
Gentrification Trust Fund. The fund also may receive donations and grants from 
public and private sources, including a contribution on an income tax return 
pursuant to Section 12-6-5060 and may receive impact fees imposed pursuant to 
Section 6-1-175. Revenues credited to this fund must be used only by the South 
Carolina State Housing Finance and Development Authority to operate a grant 
program that provides financial assistance for relocation to low-income or 
fixed-income individuals, churches, and groups adversely impacted and displaced 
by gentrification due to growth prompted by private developers, political 
subdivisions, or other entities. The South Carolina State Housing Finance and 
Development Authority shall promulgate regulations specifying the manner in 
which an individual becomes eligible for a grant and shall determine the manner 
in which money from the fund is distributed.

SECTION 3. Section 12-6-5060(A) of the 
S.C. Code is amended to read:

 (A) Each taxpayer required to file a state individual income tax 
return may contribute to the War Between the States Heritage Trust Fund 
established pursuant to Section 51-18-115, the Nongame Wildlife and Natural 
Areas Program Fund established pursuant to Section 50-1-280, the Children's 
Trust Fund of South Carolina established pursuant to Section 63-11-910, the 
Eldercare Trust Fund of South Carolina established pursuant to Section 
43-21-160, the First Steps to School Readiness Fund established pursuant to Section 
63-11-1750, the South Carolina Military Family Relief Fund established pursuant 
to Article 3, Chapter 11, Title 25, the Donate Life South Carolina established 
pursuant to Section 44-43-1310, the Veterans' Trust Fund of South Carolina 
established pursuant to Chapter 21, Title 25, the South Carolina Litter Control 
Enforcement Program (SCLCEP) and used by the Governor's Task Force on Litter 
only for the SCLCEP Program, the S