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Subcommittee backs Municipal Tax Relief Act to let select cities impose a temporary 1% sales tax with homeowner credit
Summary
S.866 would allow certain municipalities and counties (initially Greenville, Buford and Oconee) that do not now impose a local sales tax to offer a temporary 1% sales-and-use tax by referendum, require at least 20% of revenue be credited to owner-occupied homeowners, and permit remaining revenue for voter-approved capital projects; the subcommittee voted 4–0 to advance the bill.
The subcommittee voted unanimously to advance S.866, the Municipal Tax Relief Act, which would permit municipalities and counties that currently do not impose a local sales tax to levy a temporary 1% sales-and-use tax by ordinance, subject to voter approval.
Staff described the measure as voter-driven: any city or county that adopts the tax must submit the plan to a referendum, publish a detailed list of voter-approved capital projects and costs, and dedicate at least 20% of tax revenue to a property-tax credit for owner-occupied homes. Witnesses said municipalities would have the option to use remaining revenue to finance critical local infrastructure and core services approved in the referendum.
Sally McLeod of the South Carolina Association of Counties told the panel her group "is comfortable with the language as the bill left the Senate" and cautioned that amendments expanding eligibility might create concerns for counties that the language sought to protect. Owen McBride of the Association of Counties explained a practical wrinkle: if a city imposes the tax within a county, the city’s project list and the county’s project list can create complications for a later countywide tax until the city’s tax term expires.
City managers and municipal leaders urged the committee to allow voters to decide. Shannon Laverin, city manager for Greenville, said the measure includes strong spending guardrails, transparency and direct homeowner benefits: "For example, a homeowner with a property valued at $500,000 would receive about $600 in annual tax relief." She told lawmakers the city receives a large share of county sales tax revenue but receives none of that revenue until local authority allows it to be captured. Taft Matney, mayor pro tem of Malden, said the bill provides a tool to address local road maintenance and other basic services.
After questions and no amendments, the committee took a roll-call vote and approved S.866 4–0 to give it favorable approval.
The next step is usual committee processing; witnesses were asked to coordinate with affected county officials before floor debate.
