The House of Representatives and Senate met in regular session this week working through bills on the calendar.
There are two weeks left in the second year of the 2025 – 2026 legislative session with adjournment by 5 p.m. on Thursday, May 14. The Senate passed an adjournment resolution, S883, allowing the Senate and the House to return to Columbia after May 14 to handle specific issues. The bill has been in the House Rules Committee since February.
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 last week 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 municipality with a population over 39,000 that uses partisan elections must, by April 1, 2027, adopt by ordinance a nonpartisan method of nominating candidates prescribed in Sections 5-15-61, 5-15-62 or 5-15-63.
- 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 in the House and is on the Senate calendar for concurrence or nonconcurrence. For questions about this bill, contact Webster Hall (whall@masc.sc) at 803.933.1232.
Action needed on property tax exemption bill
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. House Speaker Murrell Smith (R-Sumter) and House Ways and Means Chairman Bruce Bannister (R-Greenville) are not in favor of this bill and are not letting this bill move forward in the House.
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 unexpected budget deficits because of properties within their municipal boundaries receiving property tax exemptions without notice to the municipal leaders.
Members are encouraged to contact members of their legislative delegation and urge them to pass S125 this session.
SC Department of Transportation Modernization legislation heads to conference committee
The House of Representatives amended and approved S831, the Senate version of the SCDOT modernization bill.
Ways & Means Committee Chairman Bruce Bannister (R-Greenville) introduced a strike-and-insert amendment at the outset of debate. The amendment removed several provisions that had raised concerns among members, including the voluntary devolution of roads and proposed increases to electric vehicles and hybrid registration fees. It would also abolish the SCDOT Commission.
Two additional amendments were adopted: one revised terminology related to tolls and choice lanes, and another removed existing requirements that C-funds be spent on state roads.
A section-by-section overview of the amended bill can be found here.
The bill was then returned to the Senate, which insisted on its version. Sens. Larry Grooms (R-Berkeley), Sean Bennett (R-Dorchester) and Overture Walker (D-Richland) will serve as Senate conferees. House conferees will be announced next week.
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.
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. The House Judiciary AI, Cybersecurity and Special Laws subcommittee and the full House Judiciary Committee gave this bill a favorable report on Tuesday and sent the bill to the House floor. Debate was adjourned on the bill until Tuesday, May 5.
- S227, the concurrency bill, remains on the Senate’s contested calendar. The bill’s sponsor, Sen. Tom Davis (R-Beaufort) began conversations on the floor of the Senate on an amendment to the bill but the bill was later contested and no action was taken.
- 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. A version of this bill was added to the annual appropriations bill via proviso by the Senate.
- H5006, a bill that exempts $10,000 from business personal property taxes for small businesses, unanimously passed the House of Representatives. The Senate Finance Committee gave this bill a favorable report. Currently, the bill is on the Senate calendar for debate next week.
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 Banking and Insurance Insurance subcommittee
H4817 – Enacts the Insurance Rate Reduction and Policyholder Protection Act – favorable report as amended. The subcommittee amendment changes shall to may. Later in the week, the full Senate Banking and Insurance Committee gave this bill a favorable report as amended by the subcommittee and further amended the bill to include windshield replacement language and outlines procedures for no fault accidents.
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 Judiciary, AI, Cybersecurity and Special Laws subcommittee
S508 – Monument and memorial protection – favorable report as amended. The amendment clarifies that any damages awarded are limited to reasonable costs to repairing and restoring memorials; allows QR codes to be updated for living memorials to add certain information; and makes clear that this bill must be consistent with constitutional rights. Later in the day, the full House Judiciary Committee gave this bill a favorable report as amended by the subcommittee.
Summary of the bill as introduced: Withholds disbursements from the Local Government Fund for any county or municipality that removes or relocates monuments or memorials.
House Education and Public Works Motor Vehicles and Public Safety subcommittee
H3851 – Sunscreen devices in vehicles – favorable report
Summary of the bill introduced: Excludes law enforcement vehicles from the medical requirements for installing sunscreen devices.
House Education and Public Works Higher Education subcommittee
S832 – University campus zoning for events – adjourned debate
Summary of the bill as introduced: Prohibits a county or municipality from restricting, delaying, prohibiting or requiring land use approval for events held on the campus of a state-supported institution of higher learning based on zoning ordinances or land use classifications.
House Ways and Means Property Tax subcommittee
S769 – Continuing budget resolution for Fiscal Year 2026-2027 – favorable report. Later in the week, the full House Ways and Means Committee gave this bill a favorable report.
Summary of the bill as introduced: Provides for the continuing authority to pay the expenses of state government if the 2026-2027 fiscal year begins without a general appropriations bill.
S866 – Enacts the Municipal Tax Relief Act – favorable report. Later in the week, the full Ways and Means Committee gave this bill a favorable report.
Summary of the bill as introduced: Authorizes certain municipalities to impose up to a 1% sales tax to provide property tax relief to owner-occupied homes.
Senate Agriculture and Natural Resources Committee
S867 – Enacts the Data Center Development Act – favorable report
Summary of the bill as introduced: Establishes a Data Center Development Office in the SC Department of Environmental Services to manage permitting data centers in the state.
Senate Finance Committee
H5006 – State of South Carolina Small Business Tax Cut of 2026 – favorable report
Summary of the bill as introduced: Exempts the first $10,000 of net depreciated value of business personal property owned by a small business.
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.
House Ways and Means Committee
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. The amendment also extends the deadline for the budget from the first Thursday in June to the last day in June.
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.
Senate Judiciary Committee
H3021 – Enacts the Small Business Regulatory Freedom Act – favorable report as amended. The amendments strike all of the language in the bill and changes it to be more adhering to regulations and provides if regulations deal with at least a $10 million fiscal impact over a five-year period, then it would have to be passed under a joint resolution.
Summary of the bill as introduced: Requires the Small Business Regulatory Review Committee to conduct an initial review of regulations pending reauthorization and make recommendations to the General Assembly for removing or retaining those regulations.
H4292 – Enacts the Roadway Protection and Safety Act – favorable report
Summary of the bill as introduced: Makes it illegal to participate in, organize, be a spectator, aider or abettor of a street takeover.
H3874 – Workers' compensation fees of attorneys and physicians – favorable report as amended. The amendment changes the cost containment committee from seven members to nine.
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.
H5120 – Fingerprinting minors – favorable report as amended. The amendment adds volunteers” to the bill, where previously it was limited to school employees.
Summary of the bill as introduced: Clarifies when juvenile fingerprint records and photographs are taken by law enforcement.
H3731 – Special purpose district property – favorable report
Summary of the bill as introduced: Removes a sunset provision concerning the authority of special purpose districts to own, dispose, acquire, purchase, hold, use, lease, convey, sell, transfer or dispose of property.
H5097 – Zoning of roadside markets – favorable report as amended with a technical amendment.
Summary of the bill as introduced: Exempts certain roadside markets operated by farmers from local zoning and certain local and state regulatory requirements.