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Lengthy floor debate on tax reform, property-tax levy amendment withdrawn

South Carolina Senate · February 12, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Senator from Dorchester outlined a proposal to remove the 15% assessment cap and replace it with a levy cap tied to reassessment cycles; after extensive questioning from colleagues the senator withdrew the amendment to allow further work and committee consideration.

A broad floor debate on comprehensive tax reform dominated the Senate for much of the session, centering on a property-tax amendment proposed by the Senator from Dorchester. The amendment would remove the 15% assessment cap on certain property and shift to a levy‑cap framework for 4% property (the senator repeatedly described mechanics intended to preserve revenue neutrality for counties while making tax increases more transparent).

On the floor, the senator explained a multi‑bucket approach to assessment: periodic five‑year reassessments, reassessments on sale, and value‑on‑build triggers for new construction; under the levy model counties would calculate a revenue‑neutral millage rate so that increases in assessed values would not automatically increase local property tax revenue without a separate public vote or budget process. “The idea is to not squeeze the balloon — let's deal with all of these issues,” the senator said, arguing the approach would increase transparency about tax increases caused by rising values.

Colleagues pressed on technical and fiscal effects. Senators asked whether counties would lose revenue, how reassessment timing and millage adjustments would work, and whether the change could increase taxes for long‑time homeowners whose assessments had been capped. Several members noted the difficulty of coupling changes to property tax with broader sales‑ and income‑tax reforms and warned against unintended consequences. One senator observed that eliminating sales‑tax exemptions without other offsets would amount to a major tax increase if done in isolation.

After extended exchanges and multiple clarifying discussions, the Senator from Dorchester moved to withdraw the amendment; the Senate granted unanimous consent and the amendment was withdrawn to allow further committee work and negotiations.

Lawmakers said the debates had set the stage for further committee work and that subcommittees and staff would continue technical work on revenue‑neutral calculations, reassessment timing and potential offsets in sales and income tax policy. The Senate adjourned with plans to continue the broader tax reform conversation at future floor sessions and in subcommittees.