South Carolina S 866: Municipal elections

Bill Text

2025-2026 Bill 866 Text of Previous Version (May. 04, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 866

Indicates Matter Stricken
Indicates New Matter

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

Committee Report

April 30, 2026

S. 866

Introduced 
by Senators Elliott and Turner 

S. Printed 4/30/26--H. [SEC 
5/4/2026 11:19 AM]

Read the first time April 16, 2026

________

The committee on House Ways and 
Means

To whom was referred a Bill (S. 866) to amend 
the South Carolina Code of Laws by enacting the "Municipal Tax Relief Act" by 
adding Chapter 41 to Title 5 so as to authorize certain municipalities to, 
etc., respectfully

Report:

That they have duly and carefully considered 
the same, and recommend that the same do pass:

B.W. BANNISTER for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill enacts the Municipal Tax Relief 
Act. The bill authorizes a municipal governing body of a municipality wholly or 
partially located in a county that does not impose any local sales tax pursuant 
to Chapter 10 or Chapter 37, Title 4 or any local law enacted by the General 
Assembly to impose a sales and use tax not to exceed 1 percent by ordinance 
within the municipality for a specific purpose or purposes for a limited amount 
of time. The bill specifies that no less than 20 percent of the revenues collected 
pursuant to this bill must be used to provide a credit against a taxpayer's 
municipal property taxes on owner occupied property. Any revenues not dedicated 
to tax relief may be used to defray the cost associated with projects 
authorized in the bill including, but not limited to, debt service on bonds 
issued to pay for such projects. DOR will administer the tax, and the revenue 
will be deposited with the State Treasurer in a fund separate and distinct from 
the General Fund. STO will be responsible for distributing the tax revenue to 
municipalities.

Department of Revenue. This bill 
will have no expenditure impact on DOR. DOR indicates that although the bill 
will require system and form changes, the department will manage the provisions 
of the bill with current processes.

State Treasurer's Office. STO 
indicates that this bill may increase expenses by $400 for initial set up and 
an average of $170 per quarter to perform calculations, distribute funds, and 
send communications to participating municipals. However, STO reports that it 
will manage the requirements of the bill with existing staff and resources.

Local Expenditure

This bill enacts the Municipal Tax Relief 
Act, which authorizes a municipal governing body of a municipality wholly or 
partially located in a county that does not impose any local sales tax pursuant 
to Chapter 10 or Chapter 37, Title 4 or any local law enacted by the General 
Assembly to impose a sales and use tax not to exceed 1 percent. The tax may be 
imposed by ordinance, subject to a referendum at the next general election. 
From the revenue generated, 20 percent must be used to fund an owner-occupied 
property tax credit, and the remaining revenue may be used for designated 
projects. 

MASC indicates that the expenditure impact 
of this bill will depend upon whether municipalities choose to pursue the tax 
and whether voters approve it. MASC notes that municipalities must fund costs 
associated with the referendum required to impose the tax, the costs of which 
vary depending on a number of factors. 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY enacting THE 
"MUNICIPAL TAX RELIEF ACT" by ADDING CHAPTER 41 TO TITLE 5 SO AS TO AUTHORIZE 
CERTAIN MUNICIPALITIES TO IMPOSE UP TO A ONE PERCENT SALES TAX TO PROVIDE 
PROPERTY TAX RELIEF TO OWNER-OCCUPIED HOMES AND TO FINANCE CERTAIN PROJECTS, TO 
SPECIFY THE MANNER IN WHICH THE TAX MUST BE IMPOSED AND ADMINISTERED AND THE 
MANNER IN WHICH THE PROPERTY TAX CREDIT IS CALCULATED.

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

SECTION 1. Title 5 of the S.C. Code is amended by adding:

CHAPTER 41

Municipal Tax Relief Act

 Section 
5-41-110. For purposes of this chapter:

 (1) 
"Core government services" means the essential responsibilities of a 
municipality that protect public safety, support economic vitality, and 
maintain critical local infrastructure. Such services include the construction, 
repair, and improvement of local roads, bridges, and drainage systems, and 
supportive capital projects, such as police facilities, fire stations, public 
assembly facilities, emergency response buildings, and related technology 
infrastructure.

 (2) 
"Department" means the South Carolina Department of Revenue.

 (3) 
"General election" means the Tuesday following the first Monday in November in 
any even-numbered year.

 (4) 
"Municipality"