The Senate and the House of Representatives met in special session on Tuesday, August 11, to adopt the budget conference report. The budget includes all recurring funds, including the 5% increase in the Local Government Fund, along with a proviso that increases the homestead property tax exemption from the first $50,000 of the home’s value to the first $75,000. Gov. Henry McMaster has a week to issue any line-item vetoes.
Earmarks in both the House and Senate versions of the budget were not included in the conference report adopted on Wednesday. Those projects could potentially be discussed by legislators at a later time. There was no timeline given on the discussion for earmarks.
Members in both chambers engaged in substantial discussions about the increase in the homestead property tax exemption included in this year’s budget, and about property tax relief in general. They promised to address several topics of conversation — changes to property taxes, property tax relief and services funded by local governments — during the 2027 legislative session.
The budget conferees were Sens. Harvey Peeler (R-Cherokee), Brad Hutto (D-Orangeburg) and Tom Davis (R-Beaufort); and Reps. Bruce Bannister (R-Greenville), David Hiott (R-Pickens) and Jackie Hayes (D-Dillon).
The adopted budget conference report includes the following:
- $15.2 million added to the Local Government Fund base amount. Legislators fully funded the LGF at 5% according to Act 84, which passed into law in 2019.
- $12.5 million in nonrecurring funding to the SC Department of Transportation for a road buyback program.
- $50 million in nonrecurring funding and $139 million from the capital reserve fund to the SC Department of Transportation for bridge modernization.
- $10.5 million in nonrecurring dollars to the SC State Election Commission for voting system upgrades.
- $72.8 million from the Capital Reserve Fund to the SC Emergency Management Division for a Federal Emergency Management Agency match.
- $443,747 in additional recurring funding to councils of governments for financial supportive staff.
- $750,000 in recurring funding to the SC Department of Natural Resources for abandoned boat removal.
- $175 million in nonrecurring funding to county transportation committees in addition to the gas tax distribution.
- $10 million in nonrecurring funding to the SC Department of Parks, Recreation and Tourism for beach renourishment grants. Municipalities are eligible to apply.
- $1 million in recurring funds and $10 million in nonrecurring funds to the SC Rural Infrastructure Authority rural infrastructure fund.
- $1 million in recurring funds and $10 million in nonrecurring funds to the SC Rural Infrastructure Authority for a statewide Water and Sewer Fund.
- $1 million in recurring dollars and $1.5 million in nonrecurring funds to the SC Department of Behavioral Health and Developmental Disabilities for mental health alternative transport.
- $1.18 million in recurring dollars to the SC Department of Labor, Licensing and Regulation for the Firefighter Cancer Healthcare Benefit Plan.
- $287,029 in additional recurring dollars to the SC Department of Labor, Licensing and Regulation for the Firefighter Assistance Support Team, or SC FAST.
Notable new provisos included in the budget conference report:
108.18. (PEBA: Retired Member of PORS) A retired member of the Police Officers Retirement System (PORS), who has been retired for at least ninety consecutive calendar days, may be hired and return to employment covered by PORS. Such a member may earn up to eighty thousand dollars annually without affecting the monthly retirement allowance received from PORS. However, if a law enforcement officer holds a supervisory rank at the time of retirement, he shall not be eligible to return to a supervisory position pursuant to the requirements of this proviso. Returning to covered employment does not accrue additional service credit.
117.221. (GP: Debt Report) From the funds appropriated and authorized in this act, including amounts passed-through to local governments, each political subdivision of this State that is required to file a report with the State Treasurer detailing its debt status for auditing purposes or otherwise, must also include in the report any installment purchase revenue bonds utilized by the political subdivision for the purpose of financing public projects.
117.222. (GP: Property Tax Bill Payments - Third-Party Authorization) Notwithstanding any other provision of law, for the current fiscal year, any person including, but not limited to, individuals, corporations, associations, nonprofit organizations, or other entities may pay the property tax bill for any real or personal property located in South Carolina. County treasurers and auditors shall accept such payments made on behalf of the property owner of record without requiring proof of authorization from the owner, provided the payment includes the correct tax notice number, parcel identification number, or other sufficient identifying information as required by the county. Payment by a third-party does not confer any ownership interest, lien rights (beyond standard redemption rights under existing law), or other legal claim to the property, except as existing law may allow as to adverse possession. Counties may continue to apply standard processing, convenience fees, if any, and receipt procedures to such payments. Nothing in this proviso authorizes or shall be interpreted to authorize a tax collector to change, update, or substitute the mailing address for subsequent tax notices unless such change is expressly requested by the property owner of record or the owner's duly authorized agent. This provision applies to taxes billed or due during Fiscal Year 2026-27.
118.26. (SR: Delinquent Tax Penalty) No county or municipality in this State shall impose or collect a delinquent tax penalty on any personal property tax bill that exceeds the amount of the underlying delinquent tax due. Any penalty assessed or collected in violation of this provision shall be refunded to the taxpayer, and no interest shall accrue on such improperly assessed penalty.
This is not an all-inclusive list of everything in the state budget. For questions about specific line items and allocations in the budget, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203.