The House of Representatives and Senate met in regular session this week. There are three weeks left in the second year of the 2025 – 2026 legislative session with adjournment by 5 p.m. on Thursday, May 14.
The Senate spent three days working through amendments to the Senate Finance Committee’s version of the budget adopting its version late Thursday afternoon. The House of Representatives worked through bills on the calendar.
Election bill amended to include municipal elections
H3556, a bill that requires the state executive committee of a political party to hear primary protests, was amended on the floor of the House to include language on municipal elections, municipal election commissions and municipal partisan elections. The amendments include these points:
- Municipal elections are to take place on the first Tuesday after the first Monday in either April or November of odd-numbered years. Municipalities that currently hold elections on the first Tuesday after the first Monday in April or November of even-numbered years will be allowed to keep their election dates in place.
- The amendments give guidance on the expiration of unexpired four-year terms of a mayor or member of council.
- The executive committee shall hear an election protest or contest within two weeks of the deadline for filing the protest or contest.
- Nomination of candidates for municipal offices may take place by party primary, party convention or by petition only in those municipalities with populations of fewer than 39,000.
- A municipal election commission may only be established for municipalities with a population of 10,000 or more.
- Elections for municipalities with a population of fewer than 10,000 must be conducted and certified by the county boards of voter registration and elections.
The bill was amended and given second reading by the House. The bill will be on the third reading calendar on Tuesday when the House returns to Columbia for session.
For questions about this bill, contact Webster Hall (whall@masc.sc) at 803.933.1232.
Senate adopts its version of the budget
The Senate gave final approval to its version of the budget on Thursday afternoon after debating amendments for three days.
The Senate version of the budget includes the following:
- $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 (same as the House version of the budget).
- $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 (same as the House version of the budget).
- $1 in nonrecurring funding and $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 (same as the House version of the budget).
- $960,000 in recurring funding to the SC Department of Juvenile Justice for teen after-school and juvenile arbitration.
- $200 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.
- $6 million in nonrecurring funds to the SC Rural Infrastructure Authority rural infrastructure fund.
- $6 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 Assistance Support Team, or SC FAST.
Several new provisos were added to the Senate version of the budget that deals with cities and towns.
- (GP: Homestead exemption) Provides an increase in the homestead property tax exemption in a tiered approach. Residents who have lived in South Carolina for at least 5 years receive an additional $25,000 exemption while residents who have lived in South Carolina for at least 10 years receive an additional $100,000 exemption. Reimbursement to local governments is included.
- (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.
- (PEBA: PORS Employer Contribution) An employer shall contribute an additional 0.76% of employer contributions into the Police Officers Retirement System for the current fiscal year. The additional employer contribution must be remitted to the system in accordance with the guidelines established for remitting retirement contributions to this system.
- (SR: Delinquent Tax Penalty) No county or municipality in this state shall impose or collect a delinquent tax penalty on any real and 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.
Next, the budget goes back to the House.
For questions about the budget, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203.
SC Department of Transportation Modernization legislation
The House of Representatives planned to debate both versions of the SCDOT modernization bills, S831 and H5071, this week but moved the debate to next Wednesday instead.
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 on S125
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 a subcommittee agenda.
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 passed by the Senate. It is now in 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.
Senate Judiciary subcommittee
S1001 – Retail alcoholic beverage caterer license – favorable report as amended. The amendment ensures wholesalers continue to deliver alcoholic beverages to the licensed location instead of catering sites.
Summary of the bill as introduced: Authorizes the SC Department of Revenue to issue a retail alcoholic beverage caterer license
S355 – Micro-distillery tastings – favorable report as amended. The amendment removes section 2 of the bill.
Summary of the bill as introduced: Modifies the time when micro-distillery tastings can occur and increases the amount of liquor that can be sold to a consumer during one business day
Senate Agriculture and Natural Resources subcommittee
S720 – South Carolina Humane Dog Breeding Act – favorable report as amended. The amendment allows the SC Department of Agriculture to conduct inspections directly or designate county animal control officers, municipal animal control officers or other trained law enforcement personnel to conduct inspections.
Summary of the bill as introduced: Defines licensing, procedures for inspection and law enforcement seizure related to dog breeding.
House Ways and Means General Government subcommittee
S238 – General Assembly adjournment – favorable report as amended. The amendment changes the deadline for third reading of the state budget, without which the adjournment date would be extended, from March 10 to March 31.
Summary of the bill as introduced: Extends the adjournment date of the General Assembly if the House of Representatives does not give third reading to the state budget on or before March 10.
S420 – Investment of funds by political subdivisions – favorable report
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.
House Medical, Military, Public and Municipal Affairs Municipal and Public Affairs subcommittee
H3165 – Annexation notice to the county – adjourned debate
Summary of the bill as introduced: Requires a municipality increasing its territory to file notice with the county where the property is being annexed. The notice is required before the first reading of the proposed annexation.
H4293 – Planning and zoning permits – favorable report as amended. The amendment allows permits to be revoked when a developer intentionally misrepresents the intended use of a development.
Summary of the bill as introduced: Invalidates any related permits if county or municipal zoning officials determine that the use of a property is not permitted under applicable zoning classifications.
House Labor, Commerce and Industry Committee
S718 – Removal of people from a vehicle park – favorable report as amended by the subcommittee to strike all of the language in the bill and replaces it with language from H3387. The committee amended the bill further to strike the language “the property has not been leased to any person for three consecutive months.”
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.
House Ways and Means Committee
S439 – Manufacturing property tax exemption – favorable report
Summary of the bill as introduced: Increases the maximum reimbursement amount for the property tax exemption on certain manufacturing property.
S853 – Abandoned buildings tax credit clarification – favorable report
Summary of the bill as introduced: Clarifies that the existence of an income-producing use prior to the period of abandonment is not a requirement for eligibility.