The House of Representatives and Senate met in regular session this week. There are four weeks left in the second year of the 2025 – 2026 legislative session with adjournment by 5 p.m. on Thursday, May 14.
The Senate plans to debate the Senate Finance Committee’s version of the budget on Tuesday beginning at noon, while the House of Representatives plan to debate the SC Department of Transportation modernization bills on Wednesday.
Zero Millage bill
S102, the zero-millage bill, would allow a city without an operating millage to impose a millage by referendum. This bill passed the Senate in 2025 and has remained in the House Ways and Means Committee since then. On Tuesday, the House Ways and Means Property Tax Committee adjourned debate on the bill until next week.
For questions about this bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Farm Annexation bill
During the same House Ways and Means Property Tax subcommittee that saw adjournment of debate on S102, the subcommittee members heard testimony and gave a unanimous favorable report to S264, the farm annexation bill. S264 would prohibit land with farm buildings or agricultural structures from being annexed by a municipality without express written agreement of the owner.
Both Todd Glover, Municipal Association of SC executive director, and Daina Phillips, legislative and public policy advocate with the Association, testified against this bill. They continued to express concern with the bill on the grounds that that not all properties taxed as agriculture are farms, and they offered to work with stakeholders to address those concerns.
For questions about this bill, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203.
SC Department of Transportation Modernization legislation
The House of Representatives plans to debate both versions of the SCDOT modernization bills, S831 and H5071, next Wednesday.
Both bills have the same language that includes these points:
- Establishes a voluntary framework for the transfer of certain state-owned roads to interested municipalities.
- Strikes the Coordinating Council for Transportation and Mobility.
- Removes at-large members from the SCDOT Commission.
- Clarifies that municipalities that accept roads from the SCDOT's inventory may impose an additional millage to meet the funding requirements of maintaining the roads.
- Requires all members of a county transportation committee to reside in the county.
- Subjects officials or employees of a county transportation committee to the State Ethics Act.
- Makes it a felony for anyone working with a county transportation committee to take or ask for money, jobs, favors or anything of value in exchange for influencing their decisions.
Both bills include language — at the request of the Municipal Association of SC — that prohibits a county council from serving as the county transportation committee.
A section-by-section breakdown of the bills can be found here.
The Municipal Association has been engaged in the SC Department of Transportation modernization efforts since last fall. This has included participation in House Ad Hoc Committee public hearings, testimony before the Senate Transportation Committee, collaboration with SCDOT, and direct outreach to municipal leaders across the state.
For questions about these bills, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Action Needed
S125, a bill that corrects a property tax loophole in current law, passed the Senate in 2025 and has been in the House Ways and Means Committee since that time.
Currently, state law allows nonprofit housing corporations that develop affordable housing to receive a full property tax exemption from the SC Department of Revenue. This exemption is given in perpetuity, and SCDOR is not required to notify local governments when it issues an exemption.
S125 would require DOR to notify the local government within 30 days of the department issuing a property tax exemption, and would require the nonprofit entity to prove that affordable housing is still being provided on an annual basis. Lastly, the bill would make the property tax exemption proportional to the nonprofit’s ownership in a qualifying property, up to 50%. So, if a nonprofit owns 25% of an affordable housing property, they would receive a 25% property tax reduction. Ownership over 50% would receive a full exemption.
What to do
Cities and towns across the state are experiencing budget deficits because of properties within their municipal boundaries receiving property tax exemptions without notice to the municipal leaders.
Members are encouraged to contact their House members and urge them to put S125 on the House Ways and Means Property Tax subcommittee agenda.
Local lobbying bill amended and passed
S632, a bill that deals with rules for lobbying city and town councils, was amended and passed by a Senate Judiciary subcommittee.
The amendment provides, in part, these points:
- The term “lobbying” does not include the activities of an organization of which a public body is a member when the organization is providing member services to the public body.
- The term “covered local governing body actions” does not include direct communication with public employees regarding administrative, technical, permitting, licensing, procurement or enforcement matters.
- A member of a local governing body and a member of the official’s immediate family shall not lobby the local governing body for which the member serves during the time the official holds office and for one year after such public service ends.
- A lobbyist shall not provide a campaign contribution to a public official, if the lobbyist engages in lobbying the public office or public body for which the candidate is seeking election.
- A lobbyist who engages exclusively in lobbying local governing bodies may serve as a member of a state board or commission.
- A lobbyist may not serve as a member of a local board or commission, if the lobbyist engages in lobbying the board or commission’s local governing body.
Next the bill will go to the full Senate Judiciary Committee for debate. For questions about these tax bills, contact Webster Hall (whall@masc.sc) at 803.933.1232.
Other bill updates
- S508, the bill that prohibits local governments from relocating, removing, disturbing or altering historic monuments or memorials erected on public property, was given a third and final reading by the Senate on Wednesday. Next, the bill goes to the House Judiciary Committee for debate.
- S227, the concurrency bill, remains on the Senate’s contested calendar until the bill sponsor, Sen. Tom Davis (R-Beaufort), and stakeholders work on amendments to the bill.
- H4764, the bill that would require municipalities and counties to enforce federal immigration laws, was given a third and final reading by the House of Representatives and sent to the Senate Judiciary Committee for debate. The Municipal Association worked with the sponsor of the bill to provide an option for cities and towns to be excused from this mandate if compliance would cause a fiscal or administrative burden. This language was amended on the House floor during debate to require the Attorney General’s Office to determine whether a municipality’s fiscal or administrative burden is sufficient to allow the excusal. This bill is now in the Senate Judiciary Committee.
For questions about these bills, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
- S768, an increase in the property tax homestead exemption to $150,000 for South Carolina resident homeowners 65 years old and older, was passed by the Senate and sent to the House for debate. This bill includes a local government reimbursement with the increase in the exemption for local governments. The bill is currently in the House Ways and Means Committee.
- H5006, a bill that exempts $10,000 from business personal property taxes for small businesses, unanimously passed the House of Representatives and is now in the Senate Finance Committee for consideration.
For questions about these tax bills, contact Webster Hall (whall@masc.sc) at 803.933.1232.
From the Dome to Your Home podcast
Don’t forget to listen to the From the Dome to Your Home podcast every Friday for a recap of the week’s legislative issues and a look to the week ahead at the State House.
Committee Updates
Senate Banking and Insurance subcommittee
H4817 – Enacts the Insurance Rate Reduction and Policyholder Protection Act – carried over
Summary of the bill as introduced: Makes changes to the SC Department of Insurance by creating a Fraud Division separate from the Attorney General's office.
House Labor, Commerce and Industry Business and Commerce subcommittee
S718 – Removal of people from a vehicle park – favorable report as amended. The amendment strikes all of the language in the bill and replaces it with language from H3387.
Summary of the bill as introduced: Outlines the conditions when the operator of any recreational vehicle park may remove any transient guest of the park.
H4750 – Enacts the Injured Workers Transparency Act – the subcommittee did not take action on the bill.
Summary of the bill as introduced: Requires forms used by injured workers to file workers compensation claims and forms used by workers compensation insurance carriers to deny benefits must provide certain explicit notice of nonrepresentation and appeals rights to the injured worker.
Senate Judiciary subcommittee
H3874 – Workers' compensation fees of attorneys and physicians – favorable report as amended. The amendment adds two claimant attorneys to the cost containment committee and provides that the chairman of the Workers Compensation Commission appoints the voting members to the cost containment committee.
Summary of the bill as introduced: Allows the Workers' Compensation Commission to establish medical fee schedules and related procedures for implementation and enforcement.
H3163 – Occupational diseases compensable under workers' compensation – favorable report
Summary of the bill as introduced: Includes a stroke in the list of occupational diseases compensable under workers' compensation in the course of employment for firefighters.
H5113 – Zoning and manufactured homes – favorable report
Summary of the bill as introduced: Prohibits local governments from preventing the continuance of legal nonconforming use of property when a preexisting manufactured home or mobile home is replaced with a new manufactured home or mobile home.
S116 – Enacts the Multifamily Dwelling Safety Act – carried over
Summary of the bill as introduced: Requires the SC Department of Labor, Licensing and Regulation to adopt a multifamily dwelling balcony code establishing minimum standards for balcony railings that are primarily constructed of wood.
Senate Finance Committee
S436 – Property tax on aircraft – favorable report
Summary of the bill as introduced: Adds a property tax exemption for a portion of the value of an aircraft of an airline company.
House Ways and Means Economic Development subcommittee
H4164 – Community development corporation tax credit – adjourned debate
Summary of the bill as introduced: Allows a tax credit for a taxpayer that invests in a community development corporation or in a community financial institution.
Senate Judiciary subcommittee
S960 – Election commission disclosure requirements – carried over
Summary of the bill as introduced: Establishes disclosure requirements for election communications by an independent expenditure committee.
House Judiciary Constitutional Laws subcommittee
H4699 – Statement of Economic Interest filing – adjourned debate
Summary of the bill as introduced: Requires a candidate for public office to file proof of current compliance with all state and federal income tax filing requirements at the same time as the candidate files the Statement of Economic Interest.
House Ways and Means Committee
H5093 – Gross proceeds of sales – favorable report
Summary of the bill as introduced: Excludes the amounts of gross proceeds of sales paid by state and local governments for the emergency services IP network.