House and Senate members met in regular session on Tuesday, Wednesday and Thursday. Senators debated and adopted an increase in the homestead exemption for property taxes, while the House Ways and Means Committee approved its version of the budget.
House Ways and Means Committee approves its version of the budget
The House Ways and Means Committee met Tuesday and Wednesday and adopted its version of the budget. The committee version of the budget includes these items:
- $15.2 million added to the Local Government Fund base amount. Committee members fully funded the LGF at 5% according to Act 84, which passed into law in 2019.
- $25 million in nonrecurring to the SC Department of Transportation for a road buyback program.
- $49.25 million in recurring funding, $60.44 million in nonrecurring funding and $139 million from the capital reserve fund to the SC Department of Transportation bridge modernization.
- $10.5 million in nonrecurring dollars to the SC State Election Commission for voting system upgrades.
- $17.2 million in nonrecurring dollars 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.
- $1.5 million in recurring funding to the SC Department of Juvenile Justice for teen after-school and juvenile arbitration.
- $100 million in nonrecurring funding to county transportation committees in addition to the gas tax distribution.
- $350,000 to the SC Department of Parks, Recreation and Tourism for Sports Tourism Advertising and Recruitment grants.
- $7.5 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 funding and $7 million in nonrecurring funds to the SC Rural Infrastructure Authority rural infrastructure fund.
- $1 million in recurring dollars and $7.2 million in nonrecurring funds to the SC Rural Infrastructure Authority for a statewide Water and Sewer Fund.
Provisos were also introduced that affect cities and towns.
67.16 (DJJ: Capital Expenditure Charge) Local governments, except for municipalities with populations of three thousand or less, utilizing the juvenile detention services provided by the Department of Juvenile Justice shall pay a capital expenditure charge of $125 per day per child not to exceed 25 days to the department for new admissions after July 1, 2025, to cover capital expenditures and investments in the facilities that house such juveniles. Municipalities with populations of three thousand or less utilizing the juvenile detention services provided by the Department of Juvenile Justice shall pay a capital expenditure charge of $50 per day per child not to exceed 25 days to the department for new admissions after July 1, 2026, to cover capital expenditures and investments in the facilities that house such juveniles. This capital expenditure is in addition to the per diem charge of $50 that offsets operating expenses. If full funding is not received from the local governments, then the remainder of the funds due shall be transferred to the department from the local government fund on behalf of such local governments. The transfer to the department of behalf of the local government shall be deemed to have been distributed to the local government.
84.rbp. (DOT: Road Buyback Program) From the funds appropriated to the Department of Transportation for the Road Buyback Program, the department shall be directed to identify and compile a list of roads on the state highway system that may be eligible for transfer in accordance with Section 57-5-80. The department shall evaluate roads that may no longer serve a statewide purpose and determine whether such roads are more properly maintained by a county, municipality, or other appropriate political subdivision. In making this determination, the department shall consider functional classification, traffic volume, connectivity, and consistency with the statewide transportation plan. In accordance with Section 57-5-80, roads deemed eligible for transfer shall be those which, in the opinion of the department, are no longer needed to serve the purpose of the state highway system. The department may negotiate with the governing bodies of the appropriate political subdivisions for the transfer of maintenance responsibilities for such roads. Road Buyback Program funds shall be used to assist with costs related to the transfer of roads from the state highway system including, but not limited to, resurfacing, design improvements, documentation, and transition-related expenses agreed upon by the department and political subdivision. The department shall submit the list of identified roads, along with criteria used for selection and any recommendations regarding the transfer process, to the Chairman of the Senate Finance Committee, the Chairman of the House Ways and Means Committee, and the Governor by February 28, 2027.
113.ecp. (AS-TREAS: Employment Contracts and Political Subdivisions) A political subdivision receiving aid from the Local Government Fund may not include a term in any contract of employment allowing for a settlement amount to be paid by the subdivision as part of the mutual dissolution of the contract that exceeds one year’s salary or the remainder of the contract value, whichever is less.
108.1. (PEBA: Lottery, Infrastructure Bank, and Magistrates Health Insurance Eligibility) South Carolina Lottery Commissioners and South Carolina Transportation Infrastructure Bank Board members and their eligible dependents are eligible to participate in the State Health and Dental Insurance Plan, upon paying the full premium costs as determined by the Public Employee Benefit Authority. If a county is participating in the State Health and Dental Insurance Plan, magistrates and their eligible dependents are eligible to participate in the State Health and Dental Insurance Plan, upon the magistrate paying the full premium costs as determined by the Public Employee Benefit Authority. Municipal court judges and their eligible dependents are eligible to participate in the State Health and Dental Insurance Plan, upon paying the full premium costs as determined by the Public Employee Benefit Authority.
108.5. (PEBA: State Health Plan) Of the funds authorized for the State Health Plan pursuant to Section 1-11-710(A)(2),an employer premium increase of 4.6 zero percent and a subscriber premium increase of zero percent will result for the standard State Health Plan for Plan Year 2026 2027. Notwithstanding the foregoing, pursuant to Section 1-11-710(A)(3), the Public Employee Benefit Authority may adjust the plan, benefits, or contributions of the State Health Plan during Plan Year 2026 2027 to ensure the fiscal stability of the Plan.
Next, the budget will go to the full House of Representatives for debate during the week of March 9. For questions about the budget, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203.
Property tax cut bills update
On Thursday, senators gave final approval to S768, an increase in the property tax homestead exemption to $150,000 for South Carolina resident homeowners 65 years old and older. This bill includes a local government reimbursement with the increase in the exemption for local governments.
The Senate Finance Committee approved H3858, a bill that decreases the tax on boats by 50% in the state and deletes the requirement that outboard motors be titled separately from hulls.
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.
Data center bills in subcommittee
Two different Senate subcommittees heard testimony this week on two different data center bills. S867, the Data Center Development Act, was in a Senate Agriculture and Natural Resources subcommittee on Tuesday and S902, a similar data center bill dealing with siting the centers, was in a Senate Judiciary subcommittee on Thursday. Neither subcommittee took action on either bill but further meetings are planned to continue to hear testimony.
For questions about data centers, contact Webster Hall (whall@masc.sc) at 803.933.1232.
Transportation bills stall in subcommittee
Both versions of the SC Department of Transportation modernization bill remain in subcommittee as members work through amendments. S831, the Senate version of the SCDOT modernization bill, as well as H5071, the House version, remain in their respective subcommittees without action.
For questions about both SCDOT modernization bills, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Immigration bill debated in subcommittee
H4764, a bill that would require cities, towns and counties that operate correctional facilities to enter into agreements to enforce federal immigration laws, was in a House Judiciary AI, Cybersecurity and Special Laws subcommittee on Tuesday. The subcommittee heard testimony on the bill but did not take action and plan to hold additional meetings. The bill sponsor agreed to work with Municipal Association staff to make this bill less harmful for cities and towns after testimony from Erica Wright.
For questions about the immigration bills, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Concurrency bill heard in the House
The House Medical, Military, Public and Municipal Affairs Municipal and Public Affairs subcommittee heard testimony from stakeholders on H4050, the House version of a concurrency bill. The subcommittee still had stakeholders who wanted to testify, but ran out of time in the meeting so no action was taken by members. The bill seeks to give local governments statutory authority to condition land development approval on the availability and adequacy of public facilities.
For questions about the concurrency bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
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.
House Agriculture, Natural Resources and Environmental Affairs Committee
H5097 – Zoning of roadside markets – favorable report as amended by the subcommittee. The subcommittee amendment clarifies that the structure is on the farmer's land, local government is not liable for the structure, and removes the preemption section E of the bill.
Summary of the bill as introduced: Exempts certain roadside markets operated by farmers from local zoning and certain local and state regulatory requirements.
Senate Finance Committee
S853 – Abandoned buildings tax credit clarification – favorable report
Summary of the bill as introduced: Clarifies that the existence of an incoming-producing use prior to the period of abandonment is not a requirement for eligibility.
S420 – Investment of funds by political subdivisions – favorable report as amended by the subcommittee. The subcommittee amendment requires that the bonds be investment grade.
Summary of the bill as introduced: Allows a qualified retiree post-employment benefit trust maintained for the benefit of a political subdivision’s retirees to invest in certain corporate debt.
Senate Judiciary Committee
H3556 – Election protests – favorable report as amended by the subcommittee. The subcommittee amendment allows the Supreme Court to establish its own filing fee.
Summary of the bill as introduced: Requires the state executive committee of a political party to hear primary protests and contests in the case of county officers, less than county officers and municipal officers.
House Labor, Commerce and Industry Committee
H4709 – Iron and steel requirements for public works projects – favorable report
Summary of the bill as introduced: Requires a public entity that enters into a contract for a public works project to set a requirement in the contract that any iron or steel product purchased for the project must be produced in the United States.
Senate Judiciary subcommittee
S175 – Enacts the Helping Alleviate Lawful Obstruction (HALO) Act – favorable report
Summary of the bill as introduced: Creates the offense of impeding, interfering, threatening or harassing a first responder engaged in the duties of performing his or her job.
S808 – Illegal acts during a state of emergency – favorable report as amended. The amendment deleted section six of the bill.
Summary of the bill as introduced: Includes harassing or threatening a worker restoring critical services during a state of emergency as a misdemeanor and assaulting or endangering a worker restoring an electric utility system, or destroying or tampering with an electric utility system as a felony.
S829 – Joint water and sewer joint system governance – favorable report as amended. The amendment only made technical changes.
Summary of the bill as introduced: Changes the process of membership in a joint system with procedures for commissioner appointment when a new member is added to a joint system.