All Roll Calls
Yes: 128 • No: 25
South CarolinaS 0866126th General Assembly (2025-2026)SenateWALLET
AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "MUNICIPAL TAX RELIEF ACT" BY ADDING CHAPTER 41 TO TITLE 5 SO AS TO AUTHORIZE CERTAIN MUNICIPALITIES TO IMPOSE UP TO A ONE PERCENT SALES TAX TO PROVIDE PROPERTY TAX RELIEF TO OWNER-OCCUPIED HOMES AND TO FINANCE CERTAIN PROJECTS, TO SPECIFY THE MANNER IN WHICH THE TAX MUST BE IMPOSED AND ADMINISTERED AND THE MANNER IN WHICH THE PROPERTY TAX CREDIT IS CALCULATED.
Sponsored By: Jason Elliott (Republican)
Signed by Governor
Summary
Municipal Tax Relief Act
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
Sales tax credit for homeowners
Starting May 19, 2026, cities that adopt this sales tax must use at least 20% of it to cut municipal property taxes on owner‑occupied homes (Section 12-43-220(c)). Your credit equals your home’s property tax value times the city’s credit share. Value is measured on January 1 of the tax year. Any unused credit money carries forward for up to three more property tax years.
Voter-approved city sales tax with cap
Starting May 19, 2026, cities in counties without certain county sales taxes as of January 1, 2026 can ask voters to add up to a 1% city sales tax. The ballot must show the rate, how long it lasts (up to eight years), projects, and whether bonds will be issued. It must also say that at least 20% goes to homeowner property tax credits. Results are certified within 30 days. The total state and local sales tax cannot be above 9% when a city tries to reimpose this tax.
Small businesses: new reporting and exemptions
Starting May 19, 2026, the city sales tax follows state sales tax rules but leaves out some items. Unprepared food bought with USDA food coupons is not taxed, and items already under the state maximum tax are not taxed again. Materials delivered under a construction contract signed before the start date are exempt if the contract is filed with the Department of Revenue within six months. Monthly billed services start being taxed with the first full billing period after the start. Businesses must report the city where items are used. Utilities must report by where customers consume the service. Rental owners or managers with units in more than one city must report sales by city.
State collects and sends city tax
Starting May 19, 2026, the South Carolina Department of Revenue collects the city sales tax like the state sales tax. The State Treasurer puts the money in a separate fund and pays cities each quarter based on where sales happened. Before paying out, the state deducts refunds and up to 1% for admin costs. The Treasurer corrects wrong allocations by adjusting later payments in the same fiscal year and fixes code errors going forward.
Sponsors & Cosponsors
Sponsor
Jason Elliott
Republican • Senate
Cosponsors
Ross Turner
Republican • Senate
Roll Call Votes
House vote • 5/13/2026
(Municipal Tax Relief Act)Passage of Bill
Yes: 96 • No: 16
Senate vote • 4/1/2026
(Municipal Tax Relief Act)2nd Reading
Yes: 32 • No: 9
Actions Timeline
Effective date 05/19/26
6/5/2026legislatureAct No. 228
6/3/2026legislatureSigned By Governor
5/19/2026GovernorRatified R 238
5/15/2026legislatureRead third time and enrolled
5/14/2026HouseRoll call Yeas-96 Nays-16
5/13/2026HouseRead second time
5/13/2026HouseRequests for debate removed-Rep
5/13/2026HouseDebate adjourned
5/7/2026HouseRequests for debate-Rep
5/5/2026HouseScrivener's error corrected
5/4/2026legislatureCommittee report: Favorable Ways and Means
4/30/2026HouseReferred to Committee on Ways and Means
4/16/2026HouseIntroduced and read first time
4/16/2026HouseRead third time and sent to House
4/15/2026SenateRoll call Ayes-32 Nays-9
4/1/2026SenateRead second time
4/1/2026SenateAmended
4/1/2026SenateScrivener's error corrected
3/24/2026legislatureCommittee report: Favorable Finance
3/18/2026SenateReferred to Committee on Finance
1/29/2026SenateIntroduced and read first time
1/29/2026Senate
Bill Text
Introduced
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