Municipal Tax Relief Act
This means potential property tax reductions for families living in owner-occupied homes in participating municipalities.
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S 866 — Municipal Tax Relief Act
Last action — Effective date 05/19/26
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 29, 2026. Enacted.
Signed by Governor Henry McMaster (Republican) on May 19, 2026.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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2 sponsors
2 primary, 0 co-sponsors signed on.
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Cleared a recorded vote
Passed 2 recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
In plain language
The bill allows municipalities to impose a sales tax for property tax relief and project financing.
This legislation permits certain municipalities in South Carolina to levy a sales tax of up to one percent. The revenue generated will be used to provide property tax relief for owner-occupied homes and to fund specific projects.
What this means for you
- Families: This means potential property tax reductions for families living in owner-occupied homes in participating municipalities.
- Small Business: Small businesses may experience changes in sales tax structure depending on the municipality's decisions regarding this tax.
Summary
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. - RATIFIED TITLE
Bill Text
What changed in the latest version
11 added · 29 removedPlain-language change summary
Recent amendments to Bill S 866 clarify how the property tax credit is calculated for municipalities. Specifically, they outline the formula for determining the credit, ensuring that it is based on total estimated revenue and property tax values. This change matters because it aims to create a transparent and fair approach to property tax relief for municipalities, helping them better manage their tax systems and potentially provide more accurate benefits to property owners.
2025-2026 Bill 866 Text of Previous Version (Mar.(Jan.
18,29, 2026) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 866Indicates Matter StrickenIndicates New Matter(Text matches printed bills.
Document has been reformatted to meet World Wide Web specifications.) Committee Report March 18, 2026 S. A bill 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 PERFECT 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.
866 Introduced by Senators Elliott and Turner S.
Printed 3/18/26--S.
Read the first time January 29, 2026 ________ The committee on Senate Finance To whom was referred a Bill (S.
866) 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, etc., respectfully Report:
That they have duly and carefully considered the same, and recommend that the same do pass:
HARVEY PEELER for Committee.
_______ A bill 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 PERFECT 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.
----XX---- This web page was last updated on MarchJanuary 18,29, 2026 at 05:2611:40 PMAM
AI-generated reading aid from the bill's amendatory text — verify against the official bill.
The bill establishes the Municipal Tax Relief Act, allowing certain municipalities to impose a sales and use tax to provide property tax relief and fund designated projects.
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5-41-110
"Municipal Tax Relief Act"
This marks the addition of a new chapter in the South Carolina Code of Laws.
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5-41-120
A municipal governing body of a municipality wholly or partially located in a county that does not impose any tax pursuant to Chapter 10 or Chapter 37, Title 4 or any local law enacted by the General Assembly may impose a sales and use tax not to exceed one percent by ordinance.
This allows municipalities in qualifying counties to impose a new sales and use tax.
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5-41-120(B)
No less than twenty percent of the revenues collected pursuant to this chapter must be used to provide a credit against a taxpayer's municipal ad valorem tax liability.
This ensures that a portion of the collected tax revenue must be used for property tax relief.
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5-41-120(C)
The governing body of the municipality shall enact an ordinance which contains the ballot question formulated by the municipality.
This establishes a requirement for municipalities to formally adopt an ordinance for tax implementation.
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5-41-120(D)
Upon receipt of the ordinance, the municipality must conduct a referendum on the question of imposing the sales and use tax in the municipality.
This mandates that the tax imposition is subject to a referendum.
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5-41-120(E)
The referendum question to be on the ballot must read substantially as follows: "Must a _____ percent sales and use tax be levied in (municipality or portion thereof) for no more than (time) for..."
This sets a standard format for the referendums regarding tax implementation.
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5-41-120(F)
If a majority of the votes cast are in favor of imposing the tax, then the tax is imposed as provided in this chapter and the enacting ordinance.
This clarifies the process for enacting the tax based on voter approval.
Action History
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Effective date 05/19/26
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Act No. 228
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Signed By Governor
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Ratified R 238
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Read third time and enrolled
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Roll call Yeas-96 Nays-16
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Read second time
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Requests for debate removed-Rep(s). Cromer, Edgerton, White, Harris, Beach, Gilreath
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Debate adjourned
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Requests for debate-Rep(s). Cromer, Gilreath, Harris, White, Edgerton, Beach
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Scrivener's error corrected
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Committee report: Favorable Ways and Means
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Referred to Committee on Ways and Means
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Introduced and read first time
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Read third time and sent to House
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Roll call Ayes-32 Nays-9
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Read second time
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Amended
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Scrivener's error corrected
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Committee report: Favorable Finance
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Referred to Committee on Finance
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Introduced and read first time
Sponsors
- Senator Jason Elliott · Primary
- Senator Ross Turner · Primary
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 0 co-sponsors · 168 not signed on · 25 voted No
Sponsors (2)
Co-sponsors (0)
None.
Not signed on (168)
168 members have not signed on to this bill.
Show all 168 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 93 | 15 | 0 | 11 |
| Democrat | 1 | 0 | 0 | 1 |
| Republican | 1 | 1 | 0 | 0 |
| Total | 95 | 16 | 0 | 12 |
| % of votes cast | 77% | 13% | 0% | 10% |
How each member voted (123)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 32 | 9 | 0 | 1 |
| Total | 32 | 9 | 0 | 1 |
| % of votes cast | 76% | 21% | 0% | 2% |
How each member voted (42)
Subjects
Frequently asked questions
- What does S 866 do?
- 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. - RATIFIED TITLE
- Who sponsors S 866?
- S 866 is sponsored by Senator Jason Elliott and Senator Ross Turner.
- What is the current status of S 866?
- This bill has been enacted into law. Introduced January 29, 2026. Enacted.
- Where can I track S 866?
- Track S 866 free on One Click Politics — get push/email alerts when it moves.
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