Education Capital Improvements Sales and Use Tax, the official text

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A203, R250, H4589)

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 4-10-470, RELATING TO COUNTIES IN WHICH THE EDUCATION CAPITAL IMPROVEMENTS SALES AND USE TAX MAY BE IMPOSED, SO AS TO PROVIDE ADDITIONAL AUTHORIZATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Education Capital Improvements Sales and Use Tax

SECTION 1. Section 4-10-470 of the S.C. Code is amended by adding:

(G)(1) The Education Capital Improvements Sales and Use Tax authorized by this article also may be imposed in a county which does not meet the collection requirements of subsection (A) so long as the county is only imposing the local option sales tax imposed pursuant to Article 1, and the county has only imposed that tax for less than ten years as of the date of the imposition of the education capital improvements sales tax authorized in this article and:

(a) the county in which the tax is to be imposed is encompassed completely by one entire school district; and

(b) the county collected less than seventy thousand dollars in state accommodations taxes as imposed pursuant to Section 12-36-920(A) in the most recent fiscal year for which full collection figures are available.

(2) Once a county meets this threshold, it thereafter remains eligible to impose this tax pursuant to this subsection.

(3) Notwithstanding Section 4-10-125, the approving resolution required pursuant to Section 4-10-25 must be adopted by the county's governing body.

(H)(1) The Education Capital Improvements Sales and Use Tax authorized by this article also may be imposed in a county which does not meet the collection requirements of subsection (A) so long as the county in which the tax is to be imposed:

(a) has two school districts which encompasses the entire county area in which the tax is to be imposed; and

(b) imposes no taxes pursuant to this chapter at the time of the referendum.

(2) Notwithstanding any other provision of this article, if the Education Capital Improvements Sales and Use Tax is imposed pursuant to this subsection, then:

(a) ten percent of the proceeds must be used to provide property tax relief by using the proceeds to offset the existing debt service millage levy on general obligation bonds pursuant to Section 4-10-445; and

(b) the tax revenue distributed to each district must be in the proportion agreed to and reflected in the resolution required pursuant to Section 4-10-425.

(3) Notwithstanding Section 4-10-425, the approving resolution required pursuant to Section 4-10-425 must be adopted by the county's governing body.

(4) Once a county meets the provisions of item (1) and imposes the Education Capital Improvements Sales and Use Tax, it thereafter remains eligible to impose this tax pursuant to this subsection.

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Ratified the 15th day of May, 2026.

Approved the 18th day of May, 2026.

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