Bill > H3332

This bill proposes a significant change to property taxation in South Carolina by establishing a statewide property tax millage (tax rate) for public school operations and capital improvements. The General Assembly would be required to annually impose a uniform property tax rate across the state, replacing individual school district property tax millages. The bill mandates that the statewide millage will generate revenue for public schools and that the General Assembly will determine how these funds are distributed to individual school districts, ensuring that districts with outstanding bonded indebtedness receive appropriate funds to cover their debt service. Importantly, the bill also introduces a provision that limits funding disparity for capital improvements between similarly populated districts to no more than 50%. Additionally, the bill provides a complete property tax exemption for all real and personal property from local school district property taxes, effectively shifting the tax burden to the statewide millage. The new tax structure would take effect for fiscal years beginning after June 30, 2026, giving local governments and school districts time to prepare for this significant change in school funding methodology.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=3332&session=126&summary=B