# South Carolina S 0688: AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 41-31-5, RELATING TO CONTRIBUTIONS AND PAYMENTS TO THE UNEMPLOYMENT TRUST FUND DEFINITIONS, SO AS TO CHANGE THE LOOKBACK PERIOD FOR THE BENEFIT RATIO; BY AMENDING SECTION 41-31-45, RELATING TO DEBT STATUS ESTIMATES, SO AS TO PROVIDE FOR A SOLVENCY TARGET FOR THE FUND; BY AMENDING SECTION 41-31-60, RELATING TO THE TAX RATE WHEN A DELINQUENT REPORT IS RECEIVED, SO AS TO CHANGE THE PENALTY FOR AN OUTSTANDING LIEN; BY AMENDING SECTION 41-31-350, RELATING TO THE PENALTY FOR FAILURE TO FILE A REPORT, SO AS TO REMOVE THE CAP ON THE PENALTY FOR FAILING TO FILE A REPORT; BY AMENDING SECTION 41-31-370, RELATING TO INTEREST ON UNPAID CONTRIBUTIONS, SO AS TO REMOVE THE CAP ON THE PENALTY FOR FAILURE TO PAY CONTRIBUTIONS; BY AMENDING SECTION 12-37-220, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT THE FIRST TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY OWNED BY A SMALL BUSINESS; BY AMENDING SECTION 12-37-900, RELATING TO PROPERTY TAX RETURNS, SO AS TO PROVIDE THAT A TAXPAYER IS NOT REQUIRED TO RETURN BUSINESS PERSONAL PROPERTY FOR TAXATION IF THE TAXPAYER HAS LESS THAN TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY; BY ADDING SECTION 12-37-980 SO AS TO REQUIRE THAT ALL BUSINESS PERSONAL PROPERTY REQUIRED TO BE RETURNED FOR TAXATION BE RETURNED TO THE DEPARTMENT OF REVENUE; AND BY AMENDING SECTION 12-20-50, RELATING TO THE LICENSE TAX ON CORPORATIONS, SO AS TO PROVIDE THAT, UNDER CERTAIN CIRCUMSTANCES, THE FEE DOES NOT APPLY TO ANY PORTION OF THE FIRST FIFTY MILLION DOLLARS OF CERTAIN CAPITAL STOCK AND PAID-IN OR CAPITAL SURPLUS. South Carolina S 0688, AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 41-31-5, RELATING TO CONTRIBUTIONS AND PAYMENTS TO THE UNEMPLOYMENT TRUST FUND DEFINITIONS, SO AS TO CHANGE THE LOOKBACK PERIOD FOR THE BENEFIT RATIO; BY AMENDING SECTION 41-31-45, RELATING TO DEBT STATUS ESTIMATES, SO AS TO PROVIDE FOR A SOLVENCY TARGET FOR THE FUND; BY AMENDING SECTION 41-31-60, RELATING TO THE TAX RATE WHEN A DELINQUENT REPORT IS RECEIVED, SO AS TO CHANGE THE PENALTY FOR AN OUTSTANDING LIEN; BY AMENDING SECTION 41-31-350, RELATING TO THE PENALTY FOR FAILURE TO FILE A REPORT, SO AS TO REMOVE THE CAP ON THE PENALTY FOR FAILING TO FILE A REPORT; BY AMENDING SECTION 41-31-370, RELATING TO INTEREST ON UNPAID CONTRIBUTIONS, SO AS TO REMOVE THE CAP ON THE PENALTY FOR FAILURE TO PAY CONTRIBUTIONS; BY AMENDING SECTION 12-37-220, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT THE FIRST TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY OWNED BY A SMALL BUSINESS; BY AMENDING SECTION 12-37-900, RELATING TO PROPERTY TAX RETURNS, SO AS TO PROVIDE THAT A TAXPAYER IS NOT REQUIRED TO RETURN BUSINESS PERSONAL PROPERTY FOR TAXATION IF THE TAXPAYER HAS LESS THAN TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY; BY ADDING SECTION 12-37-980 SO AS TO REQUIRE THAT ALL BUSINESS PERSONAL PROPERTY REQUIRED TO BE RETURNED FOR TAXATION BE RETURNED TO THE DEPARTMENT OF REVENUE; AND BY AMENDING SECTION 12-20-50, RELATING TO THE LICENSE TAX ON CORPORATIONS, SO AS TO PROVIDE THAT, UNDER CERTAIN CIRCUMSTANCES, THE FEE DOES NOT APPLY TO ANY PORTION OF THE FIRST FIFTY MILLION DOLLARS OF CERTAIN CAPITAL STOCK AND PAID-IN OR CAPITAL SURPLUS., is a 126th General Assembly (2025-2026) Senate bill sponsored by A. Shane Massey (Republican); status signed, last action 2026-06-05 (Effective date See Act for Effective Date); PRIA reads it as touching household money (as of 2026-10-12). - Canonical: https://policyrisk.com/state-bill/SC-S0688-2025-2026 - As of: 2026-10-12 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: South Carolina S 0688 - State: South Carolina - Session: 126th General Assembly (2025-2026) - Title: AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 41-31-5, RELATING TO CONTRIBUTIONS AND PAYMENTS TO THE UNEMPLOYMENT TRUST FUND DEFINITIONS, SO AS TO CHANGE THE LOOKBACK PERIOD FOR THE BENEFIT RATIO; BY AMENDING SECTION 41-31-45, RELATING TO DEBT STATUS ESTIMATES, SO AS TO PROVIDE FOR A SOLVENCY TARGET FOR THE FUND; BY AMENDING SECTION 41-31-60, RELATING TO THE TAX RATE WHEN A DELINQUENT REPORT IS RECEIVED, SO AS TO CHANGE THE PENALTY FOR AN OUTSTANDING LIEN; BY AMENDING SECTION 41-31-350, RELATING TO THE PENALTY FOR FAILURE TO FILE A REPORT, SO AS TO REMOVE THE CAP ON THE PENALTY FOR FAILING TO FILE A REPORT; BY AMENDING SECTION 41-31-370, RELATING TO INTEREST ON UNPAID CONTRIBUTIONS, SO AS TO REMOVE THE CAP ON THE PENALTY FOR FAILURE TO PAY CONTRIBUTIONS; BY AMENDING SECTION 12-37-220, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT THE FIRST TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY OWNED BY A SMALL BUSINESS; BY AMENDING SECTION 12-37-900, RELATING TO PROPERTY TAX RETURNS, SO AS TO PROVIDE THAT A TAXPAYER IS NOT REQUIRED TO RETURN BUSINESS PERSONAL PROPERTY FOR TAXATION IF THE TAXPAYER HAS LESS THAN TEN THOUSAND DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY; BY ADDING SECTION 12-37-980 SO AS TO REQUIRE THAT ALL BUSINESS PERSONAL PROPERTY REQUIRED TO BE RETURNED FOR TAXATION BE RETURNED TO THE DEPARTMENT OF REVENUE; AND BY AMENDING SECTION 12-20-50, RELATING TO THE LICENSE TAX ON CORPORATIONS, SO AS TO PROVIDE THAT, UNDER CERTAIN CIRCUMSTANCES, THE FEE DOES NOT APPLY TO ANY PORTION OF THE FIRST FIFTY MILLION DOLLARS OF CERTAIN CAPITAL STOCK AND PAID-IN OR CAPITAL SURPLUS. - Status: signed - Chamber: Senate - Introduced: 2025-12-10 - Last action: 2026-06-05, Effective date See Act for Effective Date - Sponsor: A. Shane Massey (Republican) - Cosponsors: 1 - Touches household money: yes - Roll calls: 9 (482 yes, 114 no in all) - Economic provisions PRIA read: 4 ## Summary DEW UI Tax Code ## Bill overview: provisions PRIA read - Lower license fee for South Carolina headquarters: benefit, medium. For corporations with headquarters in South Carolina, up to $50 million of qualifying equity contributions is excluded from paid-in or capital surplus when computing the annual corporate license fee. Qualifying investors include venture capital funds, accredited angel investors, and certain private… - Stronger penalties on late unemployment taxes: cost, medium. Any quarter with an unpaid tax execution from before January 1, 2027 puts you in tax class 20 until it is paid. For executions issued on or after January 1, 2027, your rate increases by 2 percentage points unless you are in a compliant department-approved installment plan. If both old and new execu… - Small business property tax break and filing: mixed, high. Starting with property tax years beginning after 2026, the first $10,000 of net depreciated business personal property is exempt for qualifying small businesses. A small business is independently owned, pays South Carolina taxes, and has fewer than 100 full-time employees or under $10 million in an… - Unemployment tax rates and fund target: mixed, medium. Employer unemployment tax rates now use longer lookbacks: 12 quarters through 2026, 16 in 2027, and 20 from 2028. Employers in rate class one in 2026 keep the 12-quarter lookback until they leave that class. The department calculates rates each year using data through June 30. The law also sets a s… ## Sponsors and cosponsors - Sponsor: A. Shane Massey (Republican), Senate - Cosponsor: Josh Kimbrell (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-05-14 | House | (DEW UI Tax Code)Concur in Senate Amendments | fail | 0 | 114 | | | 2026-05-14 | Senate | (DEW UI Tax Code)to adopt the conference report | pass | 40 | 0 | | | 2026-05-14 | House | (DEW UI Tax Code)Adopt Conference Report | pass | 107 | 0 | | | 2026-05-13 | Senate | (DEW UI Tax Code)to adopt amendment | pass | 44 | 0 | | | 2026-05-12 | House | (DEW UI Tax Code)Passage of Bill | pass | 115 | 0 | | | 2026-04-01 | Senate | (DEW UI Tax Code)3rd Reading | pass | 45 | | | | 2026-04-01 | Senate | (DEW UI Tax Code)3rd Reading | pass | 45 | 0 | | | 2026-03-25 | Senate | (DEW UI Tax Code)2nd Reading | pass | 43 | | | | 2026-03-25 | Senate | (DEW UI Tax Code)2nd Reading | pass | 43 | 0 | | ## Actions (35) - 2026-06-05: Effective date See Act for Effective Date (legislature) - 2026-06-03: Act No. 243 (legislature) - 2026-05-22: Signed By Governor (Governor) - 2026-05-20: Ratified R 264 (legislature) - 2026-05-18: Ordered enrolled for ratification (House) - 2026-05-14: Roll call Ayes-40 Nays-0 (Senate) - 2026-05-14: Conference report received and adopted (Senate) - 2026-05-14: Roll call Yeas-107 Nays-0 (House) - 2026-05-14: Conference report received and adopted (House) - 2026-05-14: Conference committee appointed Bennett, Williams, Massey (Senate) - 2026-05-14: Conference committee appointed B Newton, Hewitt, Kirby (House) - 2026-05-14: Roll call Yeas-0 Nays-114 (House) - 2026-05-14: Non-concurrence in Senate amendment (House) - 2026-05-13: Returned to House with amendments (Senate) - 2026-05-13: Roll call Ayes-44 Nays-0 (Senate) - 2026-05-13: House amendment amended (Senate) - 2026-05-13: Read third time and returned to Senate with amendments (House) - 2026-05-12: Roll call Yeas-115 Nays-0 (House) - 2026-05-12: Read second time (House) - 2026-05-12: Amended (House) - 2026-05-08: Scrivener's error corrected (legislature) - 2026-05-07: Committee report: Favorable with amendment Ways and Means (House) - 2026-04-14: Referred to Committee on Ways and Means (House) - 2026-04-14: Introduced and read first time (House) - 2026-04-01: Roll call Ayes-45 Nays-0 (Senate) - 2026-04-01: Read third time and sent to House (Senate) - 2026-04-01: Amended (Senate) - 2026-03-25: Roll call Ayes-43 Nays-0 (Senate) - 2026-03-25: Read second time (Senate) - 2026-03-17: Scrivener's error corrected (legislature) - 2026-03-12: Committee report: Favorable Labor, Commerce and Industry (Senate) - 2026-01-13: Referred to Committee on Labor, Commerce and Industry (Senate) - 2026-01-13: Introduced and read first time (Senate) - 2025-12-10: Referred to Committee on Labor, Commerce and Industry (Senate) - 2025-12-10: Prefiled (Senate) ## Bill text - Introduced: [HTML](https://www.scstatehouse.gov/sess126_2025-2026/bills/688.htm) ## Related bills - S 0623: AN ACT TO EXEMPT GEORGETOWN COUNTY FROM CERTAIN BUILDING REQUIREMENTS AND TO ALLOW THE COUNTY TO INSTEAD ENFORCE AE STANDARDS IN GEORGETOWN COUNTY'S FLOOD DAMA… (became law) - S 0586: AN ACT TO AMEND ACT 172 OF 1995, RELATING TO THE KERSHAW COUNTY TRANSPORTATION COMMITTEE, SO AS TO PROVIDE THAT EACH MEMBER OF THE KERSHAW COUNTY TRANSPORTATIO… (signed) - H 5653: AN ACT TO AMEND ACT 843 OF 1952, AS AMENDED, RELATING TO THE LEE COUNTY BOARD OF EDUCATION, SO AS TO CLARIFY THE METHOD BY WHICH PERSONS FILE TO BECOME A CANDI… (signed) - S 1062: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE STATE COMMISSION ON HIGHER EDUCATION, RELATING TO DETERMINATION OF RATES OF TUITION AND FEES, DESIGNATED AS RE… (signed) - S 0779: A JOINT RESOLUTION TO PROVIDE THAT EACH MEMBER OF THE GENERAL ASSEMBLY SHALL RECEIVE A MONTHLY LEGISLATIVE EXPENSE ALLOWANCE OF ONE THOUSAND DOLLARS; TO PROVID… (signed) - H 5261: A JOINT RESOLUTION TO EXTEND THE DEADLINE FOR RECEIVING ALCOHOL SERVER TRAINING AS PROVIDED FOR IN CHAPTER 3, TITLE 61 TO MAY 1, 2026. (signed) ## Sources - [Introduced (HTML)](https://www.scstatehouse.gov/sess126_2025-2026/bills/688.htm) ## Related - [S 0623: AN ACT TO EXEMPT GEORGETOWN COUNTY FROM CERTAIN BUILDING REQUIREMENTS AND TO AL…](https://policyrisk.com/state-bill/SC-S0623-2025-2026) - [S 0586: AN ACT TO AMEND ACT 172 OF 1995, RELATING TO THE KERSHAW COUNTY TRANSPORTATION…](https://policyrisk.com/state-bill/SC-S0586-2025-2026) - [H 5653: AN ACT TO AMEND ACT 843 OF 1952, AS AMENDED, RELATING TO THE LEE COUNTY BOARD O…](https://policyrisk.com/state-bill/SC-H5653-2025-2026) - [S 1062: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE STATE COMMISSION ON HIGHER EDU…](https://policyrisk.com/state-bill/SC-S1062-2025-2026) - [S 0779: A JOINT RESOLUTION TO PROVIDE THAT EACH MEMBER OF THE GENERAL ASSEMBLY SHALL RE…](https://policyrisk.com/state-bill/SC-S0779-2025-2026) - [H 5261: A JOINT RESOLUTION TO EXTEND THE DEADLINE FOR RECEIVING ALCOHOL SERVER TRAINING…](https://policyrisk.com/state-bill/SC-H5261-2025-2026) - [South Carolina bills](https://policyrisk.com/states/south-carolina/bills) - [South Carolina state hub](https://policyrisk.com/states/south-carolina) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/SC-S0688-2025-2026 (as of 2026-10-12).