The second session of the 126th General Assembly begins in January, with several changes and new faces coming to Columbia.
Because the Municipal Association of SC board of directors adopted Advocacy Initiatives for the two-year session last year, those priorities — along with other legislation introduced during the session — are still effective.
Advocacy Initiatives
Several of the Municipal Association’s 12 Advocacy Initiatives for the 2025 – 2026 legislative session are highlighted here.
- Allow cities and towns with no property tax millage to impose a millage with certain limitations.
Millage is the property tax rate cities and towns use to generate revenue for emergency services, police departments, infrastructure, parks and community programs. This legislation would clarify that cities and towns without an operating millage may impose a millage within certain limitations.
S102 passed the Senate in 2025, and is now in the House Ways and Means Committee for consideration.
- Protect the authority of cities and towns to regulate short-term rentals within municipal boundaries.
Local leaders, working with residents, neighborhoods and businesses, know best how to regulate and manage the challenges presented by short-term rentals. A one-size-fits-all statewide approach to managing short-term rentals in diverse South Carolina cities and towns is not the solution. Regulation of these properties is critical for public health and safety, as well as revenue generation for local governments and the general viability of neighborhoods.
S442 was introduced in the Senate that would allow local governments to regulate short term rentals.
- Support efforts to help solve the liquor liability insurance burden on small businesses.
The rising cost of liquor liability insurance in South Carolina is negatively impacting small businesses and forcing businesses to close. Locally owned restaurants are a vital part of cities, offering residents a place to gather, and serving as destinations for visitors.
The General Assembly passed H3430 in 2025, a bill that makes changes to current liquor lability insurance laws. The bill provides for a joint and several liability change and provides ways for restaurants and bars to lower insurance coverage through server training and other opportunities. This bill also lowers the amount of liquor liability insurance required for one-day festivals.
Introduction of legislation, pending legislation
Since this is the second year of a two-year session, all bills that were introduced in 2025 and did not pass are still eligible for debate. Legislators can also continue to introduce new bills during the prefiling period and during the regular session. When the 2026 session is over, any bill that did not pass is dead and would need to be introduced during the 2027 legislative session.
The Municipal Association is tracking several bills that are currently in the House and Senate awaiting action. In addition to S102, the zero-millage bill; as well as S442, the short-term rentals bill, there are also bills pending in the General Assembly that would impact the SC Freedom of Information Act, wells and septic tanks and annexation.
Broader issues like local elections, property tax reform, infrastructure and road ownership and maintenance are expected to be a topic of discussion at the State House, along with social issues making an appearance again.
The Municipal Association’s Legislative Tracking System follows all bills related to municipal government along with updates from daily subcommittee and committee action.
State budget
Legislators in the budget-writing subcommittees in the House Ways and Means Committee and the Senate Finance Committee are already working on the upcoming budget for fiscal year 2026-2027.
Cities and towns that have a special request for a local project should begin talking with members of the local legislative delegation about the funding request and the project. Now is the time to show legislators what these state budget dollars mean to local services and infrastructure.
New legislators
During the months after the 2025 session adjourned, several lawmakers resigned their seat for varying reasons. Sen. Roger Nutt, Rep. Bobby Cox, Rep. Chris Murphy and Rep. RJ May all resigned their seats effective immediately. Special elections are scheduled to be held in December.
These legislators held seats on committees in each chamber and their resignations cause other lawmakers to be moved creating a shift of committee membership.
More new faces are expected to join incumbent legislators after the 2026 elections for the House of Representatives. Senators are not up for reelection until 2028. Both House members and all state constitutional officers are also up for reelection.
Keep in touch
During the session, subscribe to the weekly legislative email From the Dome to Your Home and listen to the From the Dome to Your Home podcast for more updates.
Legislation to be debated in 2026 and the Municipal Association’s Advocacy Initiatives will all be discussed during Hometown Legislative Action Day, January 20 at the Columbia Metropolitan Convention Center. Find the full agenda and details online.