What major South Carolina tax law changes came out of the 2025 legislative session?

Plain-English summary

Each year the Department publishes a plain-language roundup of the tax law changes from the legislative session. This Information Letter covers the 2025 session, sorted into four categories: (1) income, bank, withholding, and corporate license fees; (2) property taxes and fees in lieu of property taxes; (3) sales and use taxes; and (4) miscellaneous. It distinguishes permanent legislation from temporary provisos (budget provisions that apply only for the fiscal year July 1, 2025 through June 30, 2026 and expire June 30, 2026 unless reenacted), and flags "reminders" — earlier laws phasing in during 2025.

The Department is explicit that the update is a guide only, not its official interpretation of any act, and directs readers to the full text of each bill at scstatehouse.gov.

Highlights the letter describes

• Internal Revenue Code conformity (Act No. 63). Section 12-6-40(A)(1)(a) is amended to conform South Carolina's income tax laws to the Internal Revenue Code as of December 31, 2024. A companion provision (§ 12-6-40(A)(1)(c)) automatically extends any 2024-expiring federal provisions South Carolina had adopted if Congress extends them in 2025. Effective May 22, 2025.
• Durable medical equipment sales tax exemption expanded (Act No. 45, House Bill 3800). The exemption in Section 12-36-2120(74) now applies to all providers holding a South Carolina retail license, not just those whose principal place of business is in-state. This responds to Orthofix, Inc. v. SCDOR and KCI USA Inc. v. SCDOR, 443 S.C. 138 (2024), where the South Carolina Supreme Court held the old in-state-only version unconstitutionally discriminated against interstate commerce. The definition of covered equipment is aligned with federal and state Medicaid/Medicare law. Effective May 12, 2025.
• Income tax rate held at 6% for the year. A temporary proviso (117.208) suspends the further phase-in of the individual income tax rate reduction under § 12-6-510 for the current fiscal year, keeping the top marginal rate at 6%.
• Selected other provisos, such as exempting federal USDA Emergency Commodity Assistance Program payments from state income tax (proviso 109.17) and authorizing the Department of Agriculture's fees for the SCATE agricultural exemption card (proviso 44.10).

What this means for you

Individuals and income tax filers

Note the updated IRC conformity date (December 31, 2024) when reconciling federal and South Carolina taxable income, and be aware the top marginal rate stays at 6% for this fiscal year rather than dropping further.

Medical equipment providers

If you hold a South Carolina retail license, the durable medical equipment exemption may now apply to you even if your principal place of business is out of state — a direct result of the Orthofix/KCI ruling.

Everyone relying on budget provisos

Temporary provisos expire June 30, 2026 unless the General Assembly reenacts them. Do not assume a proviso-based benefit carries into a later fiscal year without checking.

Common questions

Q: What is this document?
A: The Department's annual summary of the tax law changes enacted in the 2025 legislative session, grouped by subject and split between permanent law and temporary budget provisos.

Q: What is the new IRC conformity date?
A: December 31, 2024, under Act No. 63 (effective May 22, 2025).

Q: What changed for durable medical equipment?
A: The § 12-36-2120(74) exemption now covers all providers with a South Carolina retail license, fixing the in-state-only rule the Supreme Court struck down in Orthofix/KCI (Act No. 45, effective May 12, 2025).

Q: Can I rely on this letter as the law?
A: No. The Department calls it a guide only and not its interpretation of any act; refer to the full bill text at scstatehouse.gov.

Citations and references

Authority and statutes:

• S.C. Code Ann. § 12-6-40(A)(1)(a) and (c) — Internal Revenue Code conformity (Act No. 63 of 2025, effective May 22, 2025)
• S.C. Code Ann. § 12-6-510 — individual income tax rate phase-down (held at 6% by temporary proviso 117.208)
• S.C. Code Ann. § 12-36-2120(74) — durable medical equipment sales tax exemption (Act No. 45 of 2025 / House Bill 3800, effective May 12, 2025)
• S.C. Code Ann. § 12-4-320 (2014) — Department's authority to issue advisory opinions
• SC Revenue Procedure #09-3

Case law:

• Orthofix, Inc. v. South Carolina Dep't of Revenue; KCI USA Inc. v. South Carolina Dep't of Revenue, 443 S.C. 138, 903 S.E.2d 496 (2024) — prior in-state-only durable medical equipment exemption held unconstitutional

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL25-11.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #25-11
SUBJECT:

Tax Legislative Update for 2025

DATE:

June 19, 2025

AUTHORITY:

S.C. Code Ann. § 12-4-320 (2014)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to announce
general information useful in complying with the laws administered by the
Department. An Information Letter has no precedential value.

Attached is a summary of the significant changes in tax and regulatory laws enacted during the
past legislative session. The summary is divided into categories, by subject matter, as indicated
below.
LEGISLATION
Numeric List of Bills by Subject Matter .......................................................

PAGE #
3

Summary of Legislation by Category:

1. Income Taxes, Bank Taxes, Withholding, and Corporate License Fees
   Legislation................................................................................................
   New Temporary Provisos ........................................................................
   Reenacted or Revised Temporary Provisos .............................................
   Reminders – Prior Legislation Phased in or Effective in 2025 and
   Thereafter ............................................................................

7
7
8
11

2. Property Taxes and Fees in Lieu of Property Taxes
   Legislation................................................................................................
   New Temporary Provisos ........................................................................
   Reenacted or Revised Temporary Provisos .............................................
   Reminders – Prior Legislation Phased in or Effective in 2025 and
   Thereafter ............................................................................

16

3. Sales and Use Taxes
   Legislation................................................................................................
   Reenacted Temporary Provisos ...............................................................

18
18

13
13
13

4. Miscellaneous
Miscellaneous Tax Legislation ................................................................
New Temporary Provisos ........................................................................
Reenacted Temporary Provisos ...............................................................

21
27
28

Temporary Provisos (New and Reenacted) – Numeric List........................

32

DISCLAIMER:
This update is intended to be a summary of the major parts of the recently enacted legislation; it
is not the Department’s interpretation of the meaning or effect of any particular piece of
legislation. This update is written in general terms for widest possible use and may not contain
all the specific requirements or provisions of authority. It is intended as a guide only, and the
application of its contents to specific situations will depend on the circumstances. It does not
represent official Department policy. You should always refer to the full text of the legislation
for specific details and requirements.
There may be instances where some tax or incentive related legislation summarized herein is
under the jurisdiction of another state agency or political subdivision rather than the Department
of Revenue. In these cases, questions concerning the legislation should be made directly to the
agency or political subdivision having primary responsibility for the administration of these acts.
TEXT OF LEGISLATION:
A complete copy of the legislation discussed can be obtained from the South Carolina
Legislature’s website at scstatehouse.gov.

2

LIST OF BILLS BY SUBJECT CATEGORY
The following is a list of significant changes in tax laws (both permanent and temporary) enacted
during the 2025 legislative session. Temporary provisos are enacted in the State budget and are
only effective for the fiscal year (July 1 – June 30) following enactment. Although many
provisos are reenacted in subsequent years, temporary provisos expire on June 30, 2026 unless
reenacted.
Also included are reminders of provisions which were enacted in a prior year but are being
phased in or are effective in 2025 and thereafter. These provisions are indicated as “reminders”
in the chart below.
This list is divided by subject matter with the bills listed in numeric order.
INCOME TAXES, BANK TAXES, WITHHOLDING, and CORPORATE LICENSE FEES
BILL #
ACT # SUBJECT
507
63
Internal Revenue Code Conformity
1087, Secs. 1 and 2 228 of Individual, Estate, and Trust Income Tax – Top Marginal Rate
2022
Reduction Phase-Down Beginning Tax Year 2022 – Reminder
1087, Sec. 4
228 of 2.5% Marginal Tax Rate Reduction in 2007 – To be Repealed 2022
Reminder
4025, Part IB, Sec.
69
Teaching Supplies and Materials – Reimbursement Amount Not
1A, Proviso 1A.9
Taxable or Refundable Income Tax Credit – Reenacted
Temporary Proviso
4025, Part IB, Sec.
69
Teacher of the Year Awards – Not Subject to South Carolina
1A, Proviso 1A.10
Income Tax – Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Job Development Tax Credit Program – Reenacted Temporary
50, Proviso 50.23
Proviso
4025, Part IB, Sec.
69
Governor’s Law Enforcement Officer of the Year Awards – Not
63, Proviso 63.9
Subject to South Carolina Income Tax – Reenacted Temporary
Proviso
4025, Part IB, Sec.
69
SC Broadband Office and SC Digital Opportunity – Reenacted
73, Proviso 73.8
Temporary Proviso
4025, Part IB, Sec.
69
Income Tax Withholding at Highest Individual Income Tax Rate
109, Proviso 109.15
– Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Emergency Commodity Assistance Program – New Temporary
109, Proviso 109.17
Proviso
4025, Part IB, Sec.
69
Retail Facilities Revitalization Act – Repeal of Act Suspended –
117, Proviso 117.111
Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Abandoned Textile Mills Credit – Effective Date of Notice of
117, Proviso 117.163
Intent to Rehabilitate – Reenacted Temporary Proviso

3

INCOME TAXES, BANK TAXES, WITHHOLDING, and CORPORATE LICENSE FEES
(CONTINUED)
BILL #
ACT # SUBJECT
4025, Part IB, Sec.
69
Tax Rate – New Temporary Proviso
117, Proviso 117.208
4025, Part IB, Sec.
69
Consumer Protection Services – Individual Income Tax
118, Proviso 118.10
Deduction – Reenacted Temporary Proviso
PROPERTY TAXES
BILL #
ACT #
654, Sec. 5
92 of
2023
4025, Part IB, Sec. 1, 69
Proviso 1.38

4025, Part IB, Sec.
69
117, Proviso 117.37
4025, Part IB, Sec.
69
117, Proviso 117.111
4025, Part IB, Sec.
69
117, Proviso 117.160
4025, Part IB, Sec.
69
117, Proviso 117.202

SUBJECT
Consolidation of Barnwell County School Districts – Millage –
Reminder
Index of Taxpaying Ability – Imputed Value for OwnerOccupied Residential Property – Reenacted Temporary
Proviso
Improvements to Property Damaged by Catastrophic Weather
Event – Time for Improvements for Eligible Events –
Reenacted and Revised Temporary Proviso
Notification of Protest to Affected County and School District –
Reenacted Temporary Proviso
Manufacturing Property Tax Reduction Disallowed – Utilities –
Reenacted Temporary Proviso
Agricultural Use Exemption for Timberland – Impact of
Additional County Requirements – Reenacted Temporary
Proviso
Personal Property Tax Relief Fund – Reenacted Temporary
Proviso
Retail Facilities Revitalization Act – Repeal of Act Suspended –
Reenacted Temporary Proviso
Millage Calculation – Adjustments for 2020 Census –
Reenacted Temporary Proviso
Political Subdivision Reimbursement – New Temporary
Proviso

SALES and USE TAXES
BILL #
ACT #
3800
45
4025, Part IB, Sec. 69
44, Proviso 44.10

SUBJECT
Sales Tax Exemption – Durable Medical Equipment
South Carolina Agriculture Tax Exemption Card (SCATE Card)
– Fee Authorized for Card – Reenacted Temporary Proviso

4025, Part IB, Sec.
92D, Proviso 92D.1

69

4025, Part IB, Sec.
109, Proviso 109.11
4025, Part IB, Sec.
109, Proviso 109.14
4025, Part IB, Sec.
113, Proviso 113.6

69
69
69

4

SALES and USE TAXES (CONTINUED)
BILL #
ACT # SUBJECT
4025, Part IB, Sec.
69
Navy Base Intermodal Facility – Distribution Facility Eligibility
88, Proviso 88.5
– Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Farm Fuels – Sales Tax Exemption – Reenacted Temporary
109, Proviso 109.16
Proviso
4025, Part IB, Sec.
69
Private Schools – Use Tax Exemption – Reenacted Temporary
117, Proviso 117.36
Proviso
4025, Part IB, Sec.
69
Respiratory Syncytial Virus Medicines Exemption – Effective
117, Proviso 117.54
Date – Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Viscosupplementation Therapies – Sales and Use Tax Suspended
117, Proviso 117.58
– Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Agribusiness Facilities – Material Handling and Construction
117, Proviso 117.138
Material Exemptions – Reenacted Temporary Proviso
4025, Part IB, Sec.
69
Festival Craftsmen – Not Making Sales at Retail – Reenacted
117, Proviso 117.168
Temporary Proviso
MISCELLANEOUS
BILL #
ACT #

SUBJECT

Administrative and Procedural
4025, Part IB, Secs. 69
41 and 117, Provisos
41.2 and 117.81
4025, Part IB, Sec. 69
109, Proviso 109.6
4025, Part IB, Sec. 69
109, Proviso 109.12
4025, Part IB, Sec. 69
109, Proviso 109.13

3% Reduction on Interest Rate on Tax Refunds – Reenacted
Temporary Proviso
Voluntary Website Posting of Tax Return Information for
Candidates and Gubernatorial Appointees – Reenacted
Temporary Proviso
Certain License or Permit Applications – Electronic Filing
Option under Penalties of Perjury – Reenacted Temporary
Proviso
Advance Referendum Notification by Election Commission to
SCDOR – Reenacted Temporary Proviso

Miscellaneous Taxes
171

33

Used Tire Fees

3430, Sec. 3

42

Alcohol Server Training

3430, Sec. 4

42

Penalties for Prohibited Acts Relating to the Sale of Beer or
Wine

5

MISCELLANEOUS (CONTINUED)
BILL #
ACT # SUBJECT
Miscellaneous Taxes
3430, Sec. 5
42
3430, Sec. 8
42
4187
89
4025, Part IB, Sec. 1, 69
Proviso 1.12
4025, Part IB, Sec.
69
33, Proviso 33.10
4025, Part IB, Sec.
69
49, Proviso 49.24
4025, Part IB, Sec.
69
117, Proviso 117.162
4025, Part IB, Sec.
69
118, Proviso 118.7

Sale of Beer or Wine at Collegiate Sporting Venues
Liquor Liability Risk Mitigation
Lexington County School District Sales and Use Tax – Extension
Local Government School Buses – Motor Fuel User Fee
Exemption – Reenacted Temporary Proviso
Nursing Home Bed Franchise Fee – Suspension – Reenacted
Temporary Proviso
Local Film Carry Forward – New Temporary Proviso
Athletic Admissions Tax Revenue – Reenacted Temporary
Proviso
Admissions Tax Rebate – Motorsports, Tennis, and Soccer
Facilities – Reenacted Temporary Proviso

6

INCOME TAXES, BANK TAXES, WITHHOLDING, AND
CORPORATE LICENSE FEES
Senate Bill 507 (Act No. 63)
Internal Revenue Code Conformity
Conformity Date. Section 12-6-40(A)(1)(a) has been amended, except as otherwise provided, to
update South Carolina’s income tax laws to conform to the Internal Revenue Code of 1986 through
December 31, 2024, and includes the effective date provisions contained therein.
Extension of Federal Expiring Provisions. Section 12-6-40(A)(1)(c) provides that if during 2025 the
federal government extends, without otherwise amending, Internal Revenue Code (IRC) provisions
that expired on December 31, 2024, then these sections or portions of sections which have been
adopted by South Carolina will be extended in the same manner that they are for federal income tax
purposes.
Effective Date: May 22, 2025

NEW TEMPORARY PROVISOS
The following new temporary provisos are effective for the State fiscal year July
1, 2025 through June 30, 2026, and will expire June 30, 2026, unless reenacted
by the General Assembly in the next legislative session.
House Bill 4025, Part IB, Section 109, Proviso 109.17 (Act No. 69)
Emergency Commodity Assistance Program
The U.S. Department of Agriculture (USDA) is issuing direct payments to eligible agricultural
producers of eligible commodities to help mitigate impacts of increased input costs and falling
commodity prices. Under this temporary proviso, federally-earned commodity assistance program
funds from the USDA are exempt from state income taxes for the fiscal year July 1, 2025 through
June 30, 2026.
House Bill 4025, Part IB, Section 117, Proviso 117.208 (Act No. 69)
Tax Rate
Under this temporary proviso, Section 12-6-510(B)(2) and (3), phasing in the income tax rate
reduction, is suspended for the current fiscal year. The top marginal income tax rate is 6% for the
2025 tax year.
7

REENACTED OR REVISED TEMPORARY PROVISOS
The following temporary provisos were enacted in a prior legislative session and
were reenacted by the General Assembly in 2025. Temporary provisos are
effective for the State fiscal year July 1, 2025 through June 30, 2026, and will
expire June 30, 2026, unless reenacted by the General Assembly in the next
legislative session.
House Bill 4025, Part IB, Section 118, Proviso 118.10 (Act No. 69)
Consumer Protection Services – Individual Income Tax Deduction
This temporary proviso allows an individual an income tax deduction for the cost incurred to
purchase identity theft protection and identity theft resolution services by monthly or annual
contract or subscription. The deduction is equal to actual costs for the contract or subscription
incurred in the tax year, up to $300 for an individual taxpayer and up to $1,000 for a joint return or
a return claiming dependents.
The deduction is available to:

1. A taxpayer who filed a return (paper or electronic) with the Department for any tax year
   from 1998 through 2012; or
2. A person whose personally identifiable information was on the return of another eligible
   person, including minor dependents.
   The deduction is not available to an individual who deducted the same actual cost as a business
   expense.
   House Bill 4025, Part IB, Section 1A, Proviso 1A.9 (Act No. 69)
   Teaching Supplies and Materials – Reimbursement Amount Not Taxable or Refundable
   Income Tax Credit
   This temporary proviso allows a $400 expense reimbursement for teaching supplies and materials
   purchased by employees of a school district or charter school who are:
3. Certified or non-certified public school teachers identified in the Professional Certified Staff
   (PCS);
4. Certified special school classroom teachers;
5. Certified media specialists;
6. Certified guidance counselors; or
7. Career specialists.

8

The reimbursement also applies to lead teachers employed in a publicly funded full day 4K
classroom approved by South Carolina First Steps to School Readiness. The reimbursement is not
considered South Carolina taxable income.
This proviso also allows any classroom teacher not eligible for the teacher supply reimbursement
described above, including a classroom teacher at a South Carolina private school, to claim a
refundable income tax credit on his/her 2025 tax return. The credit is the lesser of $400 or the
amount spent on teacher supplies and materials. The return or amended return claiming the credit
must be filed on or before June 30, 2026, and may include expenses incurred after December 31,
2025.
A teacher may not receive the reimbursement provided by this proviso and also claim the income
tax credit.
House Bill 4025, Part IB, Section 1A, Proviso 1A.10 (Act No. 69)
Teacher of the Year Awards – Not Subject to South Carolina Income Tax
This temporary proviso provides for various teacher of the year awards. The awards made according
to this proviso are not subject to South Carolina income tax.
House Bill 4025, Part IB, Section 117, Proviso 117.111 (Act No. 69)
Retail Facilities Revitalization Act – Repeal of Act Suspended
The South Carolina Retail Facilities Revitalization Act (Title 6, Chapter 34) was enacted in 2006
(Act No. 285) to create an incentive for the renovation, improvement, and redevelopment of
abandoned retail facility sites in South Carolina. A taxpayer who renovates, improves, or redevelops
an abandoned retail facility at an eligible site may elect to take either an income tax credit or a
property tax credit. By its terms Act No. 285 of 2006 was automatically repealed on July 1, 2016.
This temporary proviso suspends the repeal of the South Carolina Retail Facilities Revitalization
Act for fiscal year 2025-2026 for sites where written notification of election of mode of credit was
provided to the Department prior to July 1, 2016 and a building permit was issued prior to July 1,
2016.
House Bill 4025, Part IB, Section 63, Proviso 63.9 (Act No. 69)
Governor’s Law Enforcement Officer of the Year Awards – Not Subject to South Carolina
Income Tax
This temporary proviso provides for an advisory committee created by the Department of Public
Safety to select a state law enforcement officer of the year, a county law enforcement officer of the
9

year, and a municipal law enforcement officer of the year. Each winner is recognized by the Office
of the Governor and receives a $10,000 award. These awards are not subject to South Carolina
income tax.
House Bill 4025, Part IB, Section 109, Proviso 109.15 (Act No. 69)
Income Tax Withholding at Highest Individual Income Tax Rate
This temporary proviso requires the Department to clarify that any income tax withholding
provision requiring withholding at the rate of 7% means withholding at the maximum individual
income tax rate.
This affects the provisions requiring withholding on:
1.
2.
3.
4.
5.

Prizes or winnings of $500 or more (Section 12-8-530);
Rent or royalty payments to nonresidents (Section 12-8-540);
Distributions by a trust or estate to a nonresident beneficiary (Section 12-8-570);
Purchases of real property from a nonresident seller (Section 12-8-580); and
Wages paid to an individual who fails to provide a taxpayer identification number or social
security number (Section 12-8-595).

This change was made permanent effective July 2, 2024 with 2024 Act No. 215.
House Bill 4025, Part IB, Section 117, Proviso 117.163 (Act No. 69)
Abandoned Textile Mills Credit – Effective Date of Notice of Intent to Rehabilitate
The South Carolina Textiles Communities Revitalization Act (Chapter 65, Title 12) was enacted in
2008 to create an incentive for the renovation, improvement, and redevelopment of abandoned
textile mill sites in South Carolina.
Section 12-65-30(A) provides qualifying taxpayers a credit against either income taxes or real
property taxes for the rehabilitation of an abandoned textile mill site in South Carolina.
A Notice of Intent to Rehabilitate (Notice) filed by June 30, 2025 shall be effective as of the
effective date designated by the taxpayer in the Notice for any project involving an abandoned
textile mill of:

1. Between 50,000 and 55,000 square feet (if the rehabilitation began by June 30, 2022); or
2. Between 130,000 and 135,000 square feet;
   and with estimated rehabilitation expenses of:
3. Between $3,000,000 and $3,500,000; or
   10

2. Between $5,500,000 and $6,500,000.
This effective date may be earlier than the date of the Notice. Any rehabilitation expenses incurred
on or after the effective date designated by the taxpayer shall be eligible for income tax credits
under Section 12-65-30(A)(2), provided all other applicable statutory requirements are satisfied.
House Bill 4025, Part IB, Section 50, Proviso 50.23 (Act No. 69)
Job Development Tax Credit Program
The state agencies responsible for managing, reporting, approving, and auditing the Job
Development Credit program may increase fees charged to companies within the program as
necessary to cover the operation expenses of the program. These fees will be included in each
agency’s Fines and Fees Annual Report.
House Bill 4025, Part IB, Section 73, Proviso 73.8 (Act No. 69)
SC Broadband Office and SC Digital Opportunity
Under this temporary proviso, grant funds provided by the Broadband Office under the American
Rescue Plan Act (ARPA) and Infrastructure Investment and Jobs Act (IIJA) will be treated as
contributions of capital of the recipients for South Carolina tax purposes.

REMINDERS
The following provisions were enacted prior to 2025 but are being phased in or
are effective in 2025 and thereafter. The provisions are summarized below for
informational purposes.
Senate Bill 1087, Sections 1 and 2 (Act No. 228 of 2022)
Individual, Estate, and Trust Income Tax – Top Marginal Rate Reduction Phase-Down
Beginning Tax Year 2022
The Comprehensive Tax Cut Act of 2022 provides that South Carolina’s top marginal tax rate in
Section 12-6-510 will be lowered from 7% to 6% over a minimum of six years. This is the rate for
individuals, estates, trusts, and any other entity except entities otherwise taxed or exempted from tax
in Sections 12-6-530 through 12-6-550 (e.g., corporations, electing small business trusts, banks,
insurance companies, and other tax exempt organizations, such as organizations under IRC Sections
501 through 528).

11

Section 12-6-510(B) provides a top marginal rate of 6.5% beginning in tax year 2022. This 6.5%
marginal rate decreases by one-tenth of one percent each tax year thereafter until the top marginal
tax rate is 6%, provided certain revenue conditions in Section 12-6-510(B)(3) are met.
The chart below shows the new top marginal tax rates for tax years 2022 through 2024 and the top
marginal tax rates during the remaining phase-down period from 2025 through 2026 if the revenue
requirements are met each of those years. All reductions are permanent and cumulative.
Tax Year
2022
2023
2024
2025
2026

Top Marginal Tax Rate Phase-down
6.5% - Permanent reduction
6.4% - Permanent reduction
6.2% 1
6.0% 2
6.0%*

*The tax rate reduction will continue by one-tenth of one percent in each tax year if general fund
revenues are projected by the Revenue and Fiscal Affairs Office to increase by at least 5% in the
fiscal year that begins during the tax year. The forecast in effect on February 15th of the current
fiscal year is the final forecast to determine the percentage adjustment.
Effective Date: June 17, 2022, and first applies to tax years beginning after 2021.
Senate Bill 1087, Section 4 (Act No. 228 of 2022)
2.5% Marginal Tax Rate Reduction in 2007 – To be Repealed
Section 12-6-515, which lowered South Carolina’s 2.5% marginal tax rate for individuals, estates,
and trusts to 0% effective in 2007, is no longer necessary with the updates to the marginal tax rates
in Section 12-6-510 as amended and will be repealed.
Effective Date: This repeal takes effect on January 1 of the first tax year in which the new
provisions of Section 12-6-510(B) are fully phased-down and the top marginal rate equals 6%. See
2022 Act No. 228, Sections 1 and 2, above.

The reduced rate for 2024 would have been 6.3% according to 2022 Act No. 228, but was further reduced to 6.2%
under 2024-25 Budget Proviso 118.23
2
The rate for 2025 is reduced to 6.0% under 2025-26 Budget Proviso 117.208.
1

12

PROPERTY TAXES
NEW TEMPORARY PROVISOS
The following new temporary provisos are effective for the State fiscal year July
1, 2025 through June 30, 2026, and will expire June 30, 2026, unless reenacted
by the General Assembly in the next legislative session.
House Bill 4025, Part IB, Section 117, Proviso 117.202 (Act No. 69)
Political Subdivision Reimbursement
Section 12-37-220(52) provides an exemption of 42.8571% of the property tax values of certain
manufacturing property assessed for property tax purposes under Section 12-43-220(a)(1). Any
revenue loss resulting from this exemption must be reimbursed and allocated to political
subdivisions of the state, including school districts. Under this temporary proviso, for the property
tax year that ends in the current fiscal year, up to $300,000,000 may be used to reimburse political
subdivisions, including school districts. If the funds are unavailable to make the full reimbursement,
the balance may be expended from the Trust Fund for Tax Relief to make the reimbursement in full.

REENACTED OR REVISED TEMPORARY PROVISOS
The following temporary provisos were enacted in a prior legislative session and
were reenacted by the General Assembly in 2025. Temporary provisos are
effective for the State fiscal year July 1, 2025 through June 30, 2026, and will
expire June 30, 2026, unless reenacted by the General Assembly in the next
legislative session.
House Bill 4025, Part IB, Section 109, Proviso 109.11 (Act No. 69)
Notification of Protest to Affected County and School District
This temporary proviso requires the Department to notify any affected county and school district
when a taxpayer, other than an individual, files a written protest of a property tax assessment or the
denial of a property tax exemption pursuant to Section 12-60-2120.

13

House Bill 4025, Part IB, Section 109, Proviso 109.14 (Act No. 69)
Manufacturing Property Tax Reduction Disallowed - Utilities
Under this temporary proviso, in the current fiscal year, property owned by or leased to any utility,
including solar farms, is not allowed the property tax reduction percentage for manufacturing
property under Section 12-37-220(B)(52).
House Bill 4025, Part IB, Section 1, Proviso 1.38 (Act No. 69)
Index of Taxpaying Ability – Imputed Value for Owner-Occupied Residential Property
The index of taxpaying ability is used to determine state funding for education under the Education
Finance Act of 1977, Chapter 20, Title 59. This index is prepared by the Department and shows a
local school district’s relative fiscal capacity in relation to that of all other districts in the state based
on the full market value of all taxable property of the district assessed for ad valorem taxes for the
second completed property tax year preceding the fiscal year in which the index is used.
Section 12-37-220(B)(47) exempts 100% of the fair market value of owner-occupied residential
property receiving a 4% assessment ratio pursuant to Section 12-43-220(c) from all property taxes
imposed for school operating purposes. School districts are reimbursed for lost revenue based on a
three-tier formula set forth in Section 11-11-156.
This temporary proviso clarifies that, for the current fiscal year, an index value for the exempt
owner-occupied residential property must be imputed by adding the second preceding taxable year
total school district reimbursements for Tiers 1, 2, and 3(A) of the three-tier formula and not to
include the supplement distribution. The Department shall not include sales ratio data in its
calculation of the index of taxpaying ability. The methodology for the calculation of value for
classes of property other than exempt owner-occupied residential property is not affected by this
temporary proviso.
House Bill 4025, Part IB, Section 113, Proviso 113.6 (Act No. 69)
Agricultural Use Exemption for Timberland – Impact of Additional County Requirements
Chapter 27 of Title 6 establishes the Local Government Fund (“Fund”) and requires that South
Carolina’s annual General Appropriations Act allocate a specified amount of general fund revenues
from the latest completed fiscal year to the Fund. No later than 30 days after the end of each
calendar quarter, the State Treasurer must distribute Fund revenues to counties and municipalities in
accordance with Section 6-27-40.

14

Sections 12-43-230(a) and 12-43-232 provide certain requirements for a landowner to receive an
agricultural use exemption. Under this temporary proviso, if a county imposes any additional
requirements for an agricultural use exemption with respect to timberland, the county’s Fund
distributions will be withheld.
House Bill 4025, Part IB, Section 117, Proviso 117.37 (Act No. 69)
Personal Property Tax Relief Fund
This temporary proviso provides that if a county imposes a personal property tax exemption sales
tax in an effort to reduce ad valorem taxes on personal motor vehicles, and a 2% sales tax rate on
gross proceeds of sales is not enough to offset the property tax not collected, then amounts must be
credited to the Trust Fund for Tax Relief established under Section 11-11-150 to provide full
reimbursement to offset the shortfall in the manner provided in Section 4-10-540(A).
Note: As of the date of this publication, no county has reduced the ad valorem taxes on personal
motor vehicles by imposing this sales tax.
House Bill 4025, Part IB, Section 92D, Proviso 92D.1 (Act No. 69)
Improvements to Property Damaged by Catastrophic Weather Event – Time for
Improvements for Eligible Events
This temporary proviso provides that for real property or personal property used as a residence,
such as a mobile home or manufactured housing unit, which was damaged during the catastrophic
weather event in October 2015, Hurricane Matthew of 2016, Hurricane Florence of 2018, or
Hurricane Helene of 2024, improvements made after the event and before June 30, 2026 are not
considered improvements and may not be reassessed at a higher rate as a result of the assistance
provided.
This provision applies if, as a result of the catastrophic weather event, the improvements made to
the property were funded by the United States Department of Housing and Urban Development
Block Grant - Disaster Recovery program, implemented by the Office of Resilience or its
predecessor, the Disaster Recovery Office, or the Office of Resilience’s Rapid Rebuild Program
funded by the Disaster Relief and Resilience Reserve Fund. This provision also applies if, at the
discretion of the county, and using qualifications determined by the county, the improvements were
made with the assistance of a volunteer organization active in disaster, or in a similar volunteer
organization.
During the current fiscal year, the property tax value of an eligible property shall remain the same
unless an assessable transfer of interest occurs. No refund is allowed on account of values adjusted
as provided in this provision.

15

House Bill 4025, Part IB, Section 117, Proviso 117.111 (Act No. 69)
Retail Facilities Revitalization Act – Repeal of Act Suspended
The South Carolina Retail Facilities Revitalization Act (Title 6, Chapter 34) was enacted in 2006
(Act No. 285) to create an incentive for the renovation, improvement, and redevelopment of
abandoned retail facility sites in South Carolina. A taxpayer who renovates, improves, or redevelops
an abandoned retail facility at an eligible site may elect to take either an income tax credit or a
property tax credit. By its terms Act No. 285 of 2006 was automatically repealed on July 1, 2016.
This temporary proviso suspends the repeal of the South Carolina Retail Facilities Revitalization
Act for fiscal year 2025-2026 for sites where written notification of election of mode of credit was
provided to the Department prior to July 1, 2016 and a building permit was issued prior to July 1,
2016.
House Bill 4025, Part IB, Section 117, Proviso 117.160 (Act No. 69)
Millage Calculation – Adjustments for 2020 Census
Under this temporary proviso, for the 2025-2026 fiscal year, a municipality is allowed an additional
and permanent adjustment to its general operating millage rate increase limitation for population
growth for any increase that would have been allowed in Fiscal Year 2021-2022 but was not known
because of the delayed release of the 2020 Census. The adjustment must be calculated using July 1,
2020 census population estimates, as originally published based on the 2020 Census, instead of July
1, 2019 population estimates based on the 2010 Census.

REMINDERS
The following provisions were enacted prior to 2025 but are being phased in or
are effective in 2025 and thereafter. The provisions are summarized below for
informational purposes.
Senate Bill 654, Section 5 (Act No. 92 of 2023)
Consolidation of Barnwell County School Districts - Millage
Effective July 1, 2024, Barnwell County School District 45, Barnwell County Consolidated School
District, and Barnwell County School District 80 are abolished. The powers and duties of the three
school districts’ respective boards of trustees will devolve on the board of trustees of a consolidated
school district to be known as the Barnwell County School District.
The Department determined and calculated the 2024 property tax millage levy of the new Barnwell
County School District based on the 2023 levy of the three present districts and the value of a mill
in each district. The millage levy for 2025 is the same as the millage levy for 2024.
16

Beginning in 2026, the new board of trustees is authorized to impose an annual tax levy, exclusive
of any millage imposed for bond debt service. Upon certification to the county auditor of the tax
levy to be imposed, the auditor will levy, and county treasurer will collect, the certified millage
upon all taxable property in the Barnwell County School District. Barnwell County School District
may raise its millage by two mills or less over the millage levied for the previous year, in addition
to any millage needed to adjust for the Education Finance Act inflation factor, and sufficient to meet
the requirements of Section 59-21-1030 (level of financial effort per pupil required for each school
district). Any increase above the two mill increase for operations may be levied only after a
majority of the registered electors of the new consolidated district vote in favor of a millage
increase in a referendum called by the district school board and conducted by the county board of
voter registration and elections. If the referendum is to be held at any time other than the general
election, then the school district is required to pay the cost of the referendum. If these provisions
conflict with the provisions of Section 6-1-320, relating to millage rate increase limitations, the
provisions of Section 6-1-320 control.
Effective Date: April 25, 2023

17

SALES AND USE TAXES
House Bill 3800 (Act No. 45)
Sales Tax Exemption – Durable Medical Equipment
The sales tax exemption in Section 12-36-2120(74) is amended to apply to all providers who hold a
South Carolina retail license. Previously, the exemption only applied to providers whose principal
place of business was in South Carolina. In Orthofix, Inc. v. South Carolina Department of Revenue
and KCI USA Inc., v. South Carolina Department of Revenue, 443 S.C. 138, 903 S.E.2d 496 (2024),
the South Carolina Supreme Court held the previous version of the exemption discriminated against
interstate commerce and was unconstitutional.
The definition of durable medical equipment and related supplies in the exemption is amended to
clarify that it is as defined under federal and state Medicaid or Medicare laws.
Effective Date: May 12, 2025

REENACTED TEMPORARY PROVISOS
The following temporary provisos were enacted in a prior legislative session and
were reenacted by the General Assembly in 2025. Temporary provisos are
effective for the State fiscal year July 1, 2025 through June 30, 2026, and will
expire June 30, 2026, unless reenacted by the General Assembly in the next
legislative session.
House Bill 4025, Part IB, Section 44, Proviso 44.10 (Act No. 69)
South Carolina Agriculture Tax Exemption Card (SCATE Card) – Fee Authorized for Card
The agricultural exemption certificate (Form ST-8F) used by farmers to purchase certain items (e.g.,
farm machinery, fertilizer, feed, containers) exempt from the sales and use tax has been replaced by
a South Carolina Agriculture Tax Exemption (“SCATE”) card issued by the South Carolina
Department of Agriculture. The Department of Agriculture began accepting applications and
issuing SCATE cards in February 2022. These cards replaced the agricultural exemption certificate
effective July 1, 2022. To obtain a SCATE card, a farmer must apply with the Department of
Agriculture at SCATEcard.com.
This temporary proviso authorizes the Department of Agriculture to charge up to $24 for a threeyear SCATE card. This provision also authorizes the Department of Agriculture to charge $5 for
any replacement SCATE cards.

18

House Bill 4025, Part IB, Section 88, Proviso 88.5 (Act No. 69)
Navy Base Intermodal Facility – Distribution Facility Eligibility
This temporary proviso provides that the Navy Base Intermodal Facility owned by the State Ports
Authority shall be considered a distribution facility for the purpose of sales and use tax exemptions
associated with the purchase of equipment and construction materials.
House Bill 4025, Part IB, Section 117, Proviso 117.138 (Act No. 69)
Agribusiness Facilities – Material Handling and Construction Material Exemptions
This temporary proviso provides that material handling and construction materials for agribusiness
facilities that invest at least $100 million in South Carolina are exempt from state and local sales
taxes.
The exemptions implicated by this proviso are in Sections 12-36-2120(51) and 12-36-2120(67). See
SC Revenue Ruling #15-2, “Construction Material Exemption for Manufacturing and Distribution
Facilities” and SC Revenue Ruling #13-3, “Material Handling Systems and Material Handling
Equipment.”
House Bill 4025, Part IB, Section 117, Proviso 117.36 (Act No. 69)
Private Schools – Use Tax Exemption
This temporary proviso exempts purchases of tangible personal property for use in private primary
and secondary schools, including kindergarten and early childhood education programs, from the
use tax if the school is exempt from income taxes under IRC Section 501(c)(3). This exemption
does not apply to purchases subject to sales tax. This use tax exemption is applicable to purchases
occurring after 1995; however, no refund is due any taxpayer on purchases exempted by this
provision. See SC Regulation 117-334 for information as to which tax, the sales tax or the use tax,
applies when goods are shipped into South Carolina.
House Bill 4025, Part IB, Section 117, Proviso 117.54 (Act No. 69)
Respiratory Syncytial Virus Medicines Exemption – Effective Date
Act No. 69, Section 3.PP, of 2003 amended Section 12-36-2120(28)(a) to add an exemption for
prescription medicines used to prevent respiratory syncytial virus effective for sales on or after June
18, 2003. This temporary proviso changes the effective date of this exemption to January 1, 1999
and provides that no refund of sales and use taxes may be claimed as a result of this change in the
effective date.

19

House Bill 4025, Part IB, Section 117, Proviso 117.58 (Act No. 69)
Viscosupplementation Therapies – Sales and Use Tax Suspended
For this State fiscal year, sales and use taxes on viscosupplementation therapies are suspended. No
refund or forgiveness of tax may be claimed as a result of this provision.
House Bill 4025, Part IB, Section 109, Proviso 109.16 (Act No. 69)
Farm Fuels – Sales Tax Exemption
This temporary proviso provides that, for the current fiscal year, chemicals and oils including, but
not limited to, grease, lubricants, and coolants used in an exempt farm machine that are essential to
the functioning of the exempt machine are exempt fuels used in farm machinery and farm tractors.
House Bill 4025, Part IB, Section 117, Proviso 117.168 (Act No. 69)
Festival Craftsmen – Not Making Sales at Retail
This temporary proviso provides that, in the current fiscal year, a person including, but not limited
to, an artist, craft person, or hobbyist, is not engaged in business or making sales at resale if he/she
makes sales no more than four times in the fiscal year at a fair, festival, carnival, or event that
operates for a period of less than 12 consecutive days. This proviso does not apply to persons who
are engaged in the business of making sales at retail for which they are required to obtain a license.

20

MISCELLANEOUS
(Summarized by Subject Matter)
MISCELLANEOUS TAX LEGISLATION
House Bill 4187 (Act No. 89)
Lexington County School District Sales and Use Tax - Extension
In the 2004 general election, the qualified electors residing in Lexington County approved a
referendum imposing a 1% Sales and Use Tax within Lexington County. The tax was originally
authorized under Act No. 378 of 2004, the Lexington County School District Property Tax Relief
Act (the Act) and became effective on March 1, 2005. Section 3(A) of the Act provides that the tax
is imposed for seven years, but it may be reimposed or extended by the General Assembly. Act No.
88 of 2011 extended the tax for an additional seven years beginning March 1, 2012, the day after
the original seven-year period expired. Act No. 278 of 2018 extended the tax for an additional seven
years beginning March 1, 2019, the day after the second seven-year period expired.
This Act extends the tax for an additional seven years beginning March 1, 2026, the day after the
third seven-year period expires.
The tax is administered and collected by the Department in the same manner that other sales and use
taxes are collected. It is in addition to all other local sales and use taxes and applies to the gross
proceeds of sales in Lexington County that are subject to the tax imposed by Chapter 36, Title 12,
and the collection and enforcement provisions of Chapter 54, Title 12. The gross proceeds of the
sale of unprepared food that may lawfully be purchased with food stamps and items subject to a
maximum tax are exempt from this tax.
Effective Date: April 28, 2025
Senate Bill 171 (Act No. 33)
Used Tire Fees
Section 44-96-170(N)(1) requires a $2 fee for tires sold with a Department of Transportation
number to the ultimate consumer, whether or not the tire is mounted by the seller. This Section is
amended to provide that the $2 fee applies to both new and used tires and also to all unmounted tire
sales.
The wholesaler or retailer receiving new tires from unlicensed wholesalers is responsible for paying
the fee. Section 44-96-170(N)(7) is amended to define a tire wholesaler as any person who sells or
offers to sell new or used tires or tubes to tire retailers or other volume buyers for passenger and
commercial vehicles to retailers. A tire wholesaler does not engage in retail sales.
21

The fee is not collected on farm or agricultural tires, including tires designed for use in the
production of farm products. Farm products as defined in Section 46-1-75(E)(1) include
horticultural, aquacultural, viticultural, forestry, floricultural, dairy, livestock, poultry, bee, and
other products ordinarily produced on farms.
The Department of Revenue administers, collects, and enforces the tire recycling fee in the same
manner that sales and use taxes are collected. The fee is remitted monthly. Taxpayers may no longer
retain 3% of the total fees collected as an administrative collection allowance.
Effective Date: May 12, 2025
House Bill 3430, Section 3 (Act No. 42)
Alcohol Server Training
Title 61 is amended to add Chapter 3, Alcohol Server Training. Under Section 61-3-110, an alcohol
server or manager must complete alcohol server training and obtain an alcohol server certificate. If
an alcohol server or manager does not have a current alcohol server certificate at the time of
employment in that capacity, then the licensee or permittee must provide alcohol server training
within 30 calendar days of employment. An alcohol server shall not be mentally or physically
impaired or intoxicated by alcohol, drugs, or controlled substances while serving alcohol on behalf
of the licensee. Section 61-3-110(A).
“Alcohol server” means an individual who sells alcohol for on-premises consumption at permitted
or licensed premises and may include a permittee, licensee, manager, or other employee of a
permittee or licensee. It does not include an individual employed or volunteering on a temporary
basis for a one-time special event or an event with a temporary permit to sell beer, wine, or
alcoholic liquors by the drink. It also does not include an individual transferring alcohol from one
location to another as a distributor, wholesaler, or as otherwise lawfully authorized to transfer
alcohol from one location to another, and it does not include an individual who cannot lawfully
serve or deliver alcohol under Sections 61-4-90(D) and 61-6-2200. Section 61-3-100(2).
The permittee or licensee must have physical or electronic copies of all alcohol server certificates
for its managers and alcohol servers for the duration of employment. Copies of alcohol server
certificates must be on the permitted and licensed premises and must be made available, upon
request, to the Department. The permittee or licensee must also provide, when requested, the date a
manager or alcohol server began employment in that capacity. A permittee or licensee will be
excused for failure to produce the alcohol server certificate if the provider failed to report the
successful completion of training and testing or the Department failed to issue a certificate to an
applicant who met the training requirements. Section 61-3-110(B).
The Department will approve alcohol server training programs offered by providers that are based
on best evidence practice standards. The Department may collaborate with the Department of
Behavioral Health and Developmental Disabilities, Office of Substance Abuse (DBHDD) and with
the South Carolina Law Enforcement Division (SLED) to determine appropriate providers. The
22

Department will approve or deny a program within 60 days of the provider’s application. Providers
may appeal a denial pursuant to Section 61-2-260 and the South Carolina Administrative
Procedures Act. Section 61-3-120(A)(1).
Providers may charge a fee of up to $50 per participant to any licensee, permittee, or individual
seeking training for the purpose of employment as an alcohol server. Section 61-3-120(A)(2).
As provided in Section 61-3-120(B), the alcohol server training program curricula must include
state laws and regulations pertaining to:
1.
2.
3.
4.
5.

the sale and service of alcoholic beverages;
the permitting and licensing of sellers of alcoholic beverages;
impaired driving or driving under the influence of alcohol or drugs;
liquor liability issues;
the carrying of concealed weapons by authorized permit holders into businesses
selling and serving alcoholic beverages; and

6. life consequences, such as loss of education scholarships, to minors relating to the
   unlawful use, transfer, or sale of alcoholic beverages.
   Training must also include the effect alcohol has on the body and human behavior; information on
   blood alcohol concentration and factors that change or alter blood alcohol concentration; the effect
   alcohol has on an individual when taken in combination with commonly used prescription or
   nonprescription drugs or with illegal drugs; information on recognizing the signs of intoxication and
   methods for preventing intoxication; methods of recognizing problem drinkers and techniques for
   intervening with and refusing to serve problem drinkers; methods of identifying and refusing to
   serve or sell alcoholic beverages to individuals under age 21 and intoxicated individuals; methods
   for properly and effectively checking the identification of an individual, for identifying illegal
   identification, and for handling situations involving individuals who have provided illegal
   identification; and South Carolina law enforcement information including the most recently
   published official statistics on drunk driving accidents, injuries, and deaths in South Carolina.
   The Department may collaborate with DBHDD and SLED to designate any other topics to be
   included in the alcohol server education and training.
   Online training programs must cover the required content in a way that clearly identifies and
   focuses on the knowledge, skills, and abilities needed to responsibly serve alcoholic beverages and
   must be developed using best practices in instructional design and exam development to ensure the
   program is fair and legally defensible. Programs offered online must be at least four hours, must be
   available in English and Spanish, and must include a test. Training and testing must be conducted
   online and tests must be monitored by an online proctor. Online or computer based programs must
   use linear navigation that requires the completion of a module before the course proceeds to the
   next module, with no content omitted, must be interactive, must have audio for content, and must
   include a test. A passing grade is required for a test, as provided by the program. Providers may
   issue training certificates only after completion of the training and successful passage of a test.
   Section 61-3-120(C).

23

Providers must give the Department a report of all individuals who completed the training and
testing within 10 days after completion of the training. The provider must also maintain records for
at least five years following the end of the training program for purposes of verifying certification
validity by the Department or SLED. Section 61-3-120(D).
The Department, in collaboration with DBHDD and SLED, may suspend or revoke a provider’s
authorization if the Department determines the provider has violated the program requirements. A
provider whose authorization is suspended or revoked must cease operations in the state
immediately and refund any money paid to it by individuals enrolled in the program at the time of
the suspension or revocation. Section 61-3-120(E).
The Department will issue an alcohol server certificate to each applicant who completes an
approved program or recertification program and completes the application form available on the
Department’s website. An individual must apply for an alcohol server certificate within six months
of completing a program. If circumstances warrant, the Department may issue a temporary alcohol
server certificate valid for a period of no more than 30 calendar days. Section 61-3-130(A)(1).
The Department may issue an alcohol server certificate to an individual from outside of South
Carolina who applies for a certificate if they have an alcohol server certificate from a nationally
recognized or comparable state recognized alcohol server certification program that the Department,
DBHDD, and SLED find meets or exceeds the programs offered in South Carolina. Section 61-3130(A)(2).
The Department will not charge a fee to issue and renew alcohol server certificates to qualifying
applicants. Section 61-3-130(F). An applicant will be deemed to be a qualifying applicant for the
purpose of alcohol server certificate issuance and renewal if they have successfully completed all
training and testing requirements found in Section 61-3-120. Section 61-3-130(G).
Alcohol server certificates will not be issued to graduates of programs that are not approved by the
Department. Section 61-3-130(B). The certificate is the property of the individual to whom it is
issued and is transferrable among employers. If an individual leaves the employment of the licensee
or permittee within six months of the issuance of a certificate, the individual must reimburse the
licensee or permittee that paid for the cost of the alcohol server training. Section 61-3-130(C).
Alcohol server certificates are valid for three years from the date the certificate was issued. After
three years, individuals must obtain a new or recertified alcohol server certificate. Section 61-3130(D).
The Department and SLED are responsible for enforcing the alcohol server training requirements.
The Department is responsible for bringing administrative actions for violations of the provisions of
Title 61, Chapter 3 or related regulations according to the provisions of Section 61-2-260 and the
South Carolina Administrative Procedures Act.
Effective Date: January 1, 2026

24

House Bill 3430, Section 4 (Act No. 42)
Penalties for Prohibited Acts Relating to the Sale of Beer or Wine
In addition to civil liability as provided by law, a violation of any of the prohibited acts found in
Section 61-4-580 is ground for the revocation or suspension of the holder’s permit. Section 61-4580(B) is amended to provide the following penalties for a permittee or licensee who violates any of
the provisions of Section 61-4-580:

1. for a first offense, a fine of $2,500;
2. for a second offense within two years of the first offense, suspension of the alcohol
   license or permit for up to 14 days, as determined by the Department; and
3. for a third offense within three years of the first offense, revocation of the alcohol
   license or permit.
   Effective Date: January 1, 2026
   House Bill 3430, Section 5 (Act No. 42)
   Sale of Beer or Wine at Collegiate Sporting Venues
   Section 61-4-523 is added to prohibit the sale of beer and wine at certain collegiate sporting venues
   unless the permit holder:
4. requires all sales personnel to complete mandatory alcohol server training approved by
   the Department;
5. utilizes internal, random checks of sales locations during an event of sufficient frequency
   to reasonably determine that sales procedures and identification verification procedures
   comply with established protocol;
6. utilizes forensic digital identification systems, or other means acceptable to the
   Department, to verify the authenticity of identification at the point of sale;
7. prohibits sales of beer and wine in student sections with designated concession areas;
   and
8. prohibits sales of beer and wine to customers presenting vertical identification cards.
   The Department will develop and implement an alternate revenue and penalty structure for
   collegiate sporting venues by August 31, 2025. The alternate revenue and penalty structure will
   recognize the unique characteristics of collegiate sporting venues, including but not limited to the
   number of sales locations within the venue, sales volume and number of patrons served per event
   held at the venue, number of sales personnel necessary to staff sales locations within the venue, and
   frequency of events held at the venue during with sales of beer and wine occur. These factors and
   the preventative measures taken by the venue will be considered when assessing administrative
   penalties in the event violations occur and may reduce any administrative penalty when the
   Department finds the permit holder acted in good faith to prevent a violation. The Department will

25

determine the seating capacity necessary for a collegiate sporting venue to be subject to the alternate
revenue procedure and penalty structure.
Effective Date: May 12, 2025
House Bill 3430, Section 8 (Act No. 42)
Liquor Liability Risk Mitigation
A person licensed or permitted to sell alcoholic beverages for on-premises consumption, which
remains open after 5:00 p.m. to sell alcoholic beverages for on-premises consumption is required to
maintain a liquor liability insurance policy or a general liability insurance policy with a liquor
liability endorsement for a total coverage of at least $1,000,000. Section 61-2-145 is amended to
add subsection (E) providing terms for liquor liability risk mitigation programs that enable licensees
or permittees to reduce their annual aggregate limit of liquor liability insurance coverage.
A licensee or permittee who stops serving alcohol by 12:00 a.m. for the entire policy period may
reduce the annual aggregate limit by $250,000.
A licensee or permittee may reduce the required annual aggregate by $100,000 per item if they:

1. have all employees who serve alcohol complete an alcohol training course pursuant to
   Title 61, Chapter 3, within 60 days of employment in that capacity;
2. have less than 40% of total sales deriving from alcohol sales; or
3. use a forensic digital identification system that validates the identification of any person
   attempting to enter the premises between the hours of 12:00 a.m. and 4:00 a.m.
   A licensee or permittee who is a nonprofit organization exempt from tax pursuant to IRC Section
   501(c)(3) or is engaging in a single event for which a Beer and Wine Special Event License or
   Liquor Special Event Permit is obtained may reduce the annual aggregate limit by $500,000.
   A licensee who meets the requirements of the above listed items will receive the permitted
   reduction in the required annual aggregate limit for each item complied with, but any person
   licensed or permitted to sell alcoholic beverages for on-premises consumption which remains open
   after 5:00 p.m. to sell alcoholic beverages for on-premises consumption must at all times maintain
   coverage with an annual aggregate limit of at least $300,000 during the entire period of the biennial
   permit or license.
   Insurance policies must provide for minimum coverage of at least 50% of the total aggregate limit,
   per occurrence, giving rise to the claim. Section 61-2-145(A).
   The liquor liability insurance requirements are included on all applications and renewals for
   biennial permits or licenses to sell alcoholic beverages for on-premises consumption when the
   permittees and licensees remain open and sell alcoholic beverages for on-premises consumption
   after 5:00 p.m. Each applicant or person renewing its license or permit who is subject to the liquor
   26

liability insurance requirements provides the Department with documentation of a liquor liability
insurance policy or general liability insurance policy with a liquor liability endorsement in the
required amounts. Section 61-2-145(B).
Failure to maintain the required liquor liability insurance coverage during the entire period of the
biennial permit or license constitutes grounds for suspension or revocation of the permit or license
and is sufficient grounds for the Department to seek an emergency revocation order as provided in
Sections 12-60-1340 and 1-23-370(c).
Insurers must notify the Department within 30 days of any lapse or termination of the liquor
liability insurance policy or general liability insurance policy with a liquor liability endorsement.
Section 61-2-145(C).
Insurers must establish liquor liability mitigation measures and offer reasonable premium discounts
for compliance with measures that reduce the risk to the general public associated with the service
of on-premises consumption of alcohol. Section 61-2-145(E)(7).
All permittees and licensees selling alcoholic beverages for on-premises consumption at any time
between the hours of 12:00 a.m. and 4:00 a.m. shall use a forensic digital identification system that
validates the identification of any person attempting to enter the premises as a patron. Section 61-2145(F).
Effective Date: January 1, 2026

NEW TEMPORARY PROVISOS
The following new temporary provisos are effective for the State fiscal year July
1, 2025 through June 30, 2026, and will expire June 30, 2026, unless reenacted
by the General Assembly in the next legislative session.
House Bill 4025, Part IB, Section 49, Proviso 49.24 (Act No. 69)
Local Film Carry Forward
This temporary proviso provides that, for the fiscal year 2025-26, up to $2,000,000 of carried
forward funds that were authorized or appropriated to the Department of Parks, Recreation, and
Tourism for the South Carolina Film Commission will be used to create a pilot program for certain
qualifying entities to receive a state rebate for 25% of production costs, including wages and
supplies. The Department of Revenue and the South Carolina Film Commission will audit
qualifying projects with a budget between $250,000 and $999,999. To qualify, a producer must be
registered with both the South Carolina Secretary of State and the Department of Revenue, and
must be a primary resident of South Carolina with a minimum of two years of residency in the state.
All production activity must be physically in South Carolina. All producers’ personal and corporate
income taxes must be current. The applicant must disclose the fiduciarily responsible parties with
existing production, production funds must be in a separate account and used exclusively for the
27

production, and the production must have full funding prior to producing. The qualifying production
must include a five-second long static or animated official FilmSC logo in the end credits before the
below-the-line crew call for the life of the project and a link to filmsc.com on the productions web
page.
Production-based activity must begin within 60 calendar days of application approval. Once an
application is approved, the project must be completed and funds expended within three years of
approval date. The final rebate will be distributed to the production company on record.

REENACTED TEMPORARY PROVISOS
The following temporary provisos were enacted in a prior legislative session and
were reenacted by the General Assembly in 2025. Temporary provisos are
effective for the State fiscal year July 1, 2025 through June 30, 2026, and will
expire June 30, 2026, unless reenacted by the General Assembly in the next
legislative session.
ADMINISTRATIVE and PROCEDURAL MATTERS
House Bill 4025, Part IB, Sections 41 and 117, Provisos 41.2 and 117.81 (Act No. 69)
3% Reduction on Interest Rate on Tax Refunds
The interest rate for tax refunds paid is reduced by 3% as follows:

1. Temporary Proviso 41.2 decreases by 2% the interest rate for tax refunds paid during the current
   fiscal year. The revenue resulting from this 2% reduction must be used for operations of the
   State’s Guardian ad Litem Program.
2. Temporary Proviso 117.81 decreases by 1% the interest rate for tax refunds paid during the
   current fiscal year. Of the revenue resulting from this 1% reduction, $475,000 must be used by
   the Senate for operating expenses of the Joint Citizens and Legislative Committee on Children.
   The remaining revenue must be used by the Department of Juvenile Justice for programs for
   mentoring or other alternatives to incarceration.
   House Bill 4025, Part IB, Section 109, Proviso 109.12 (Act No. 69)
   Certain License or Permit Applications – Electronic Filing Option under Penalties of Perjury
   This temporary proviso provides that the Department may require a statement subject to penalties of
   perjury instead of a statement under oath for the purpose of allowing certain applications for
   licenses or permits to be filed electronically.
   28

House Bill 4025, Part IB, Section 109, Proviso 109.13 (Act No. 69)
Advance Referendum Notification by Election Commission to SCDOR
This temporary proviso provides that a county or municipal election commission must notify the
Department 60 days prior to a referendum on the imposition of a local sales tax or local option
permit.
House Bill 4025, Part IB, Section 109, Proviso 109.6 (Act No. 69)
Voluntary Website Posting of Tax Return Information for Candidates and Gubernatorial
Appointees
This temporary proviso requires the Department to develop a program to process inquiries from a
candidate for an office in South Carolina or its political subdivisions, or any gubernatorial
appointee, concerning that candidate’s or appointee’s state income tax filings. Upon request by the
candidate or appointee in connection with his own income tax return, the Department must
determine if the candidate or appointee has filed his annual state income tax returns for the past ten
years, paid all income taxes due during that time period, and, if applicable, satisfied all judgments,
liens, or other penalties for failure to pay income taxes when due.
Unless the candidate or appointee requests otherwise, the following information will be posted on
the Department’s website:

1. The candidate’s or appointee’s name;
2. The years that the candidate or appointee was required to file income tax returns during the last
   ten years and any years that he was not required to file income tax returns;
3. Whether the candidate or appointee filed income tax returns in each of the ten years that he was
   required to file an income tax return;
4. Whether the candidate or appointee paid income taxes due each year that he was required to file
   an income tax return; and
5. Whether the candidate or appointee had a judgment, lien, or other penalty levied against him for
   failure to pay income taxes when due; the year of any levy; and whether the judgment, lien or
   other penalty has been satisfied.
   A candidate’s or appointee’s inquiry constitutes a waiver of confidentiality with the Department
   concerning the information posted. The Department may not post complete income tax returns.

29

MISCELLANEOUS TAX LEGISLATION
House Bill 4025, Part IB, Section 1, Proviso 1.12 (Act No. 69)
Local Government School Buses – Motor Fuel User Fee Exemption
This temporary proviso provides that motor fuel used in school buses operated by school districts,
other governmental agencies, and head start agencies for purposes of transporting students for
school or school-related activities is exempt from the State motor fuel user fee.
Note: Motor fuel used in school buses owned by the State is exempt from the State motor fuel user
fee under Section 12-28-710(12).
House Bill 4025, Part IB, Section 118, Proviso 118.7 (Act No. 69)
Admissions Tax Rebate – Motorsports, Tennis, and Soccer Facilities
This temporary proviso provides that up to $114,000 in admissions tax revenue collected annually
from all events held at a NASCAR sanctioned motor speedway or racetrack that hosts at least one
race each year featuring the preeminent NASCAR cup series must be rebated to the motorsports
entertainment complex facility in the current fiscal year to keep a NASCAR race at the facility. In
addition, any sports facility that either hosts at least one preeminent Women’s Tennis Associationsanctioned tournament or that operates as the home venue for a professional soccer team
participating in the United Soccer Leagues, second division or higher, must be rebated half of the
facility’s admissions tax revenue for the fiscal year and used by that facility for marketing the
events held at the facility.
House Bill 4025, Part IB, Section 33, Proviso 33.10 (Act No. 69)
Nursing Home Bed Franchise Fee – Suspension
This temporary proviso continues to suspend the nursing home bed franchise fee imposed on
February 1, 2002, but subsequently suspended July 1, 2002.
House Bill 4025, Part IB, Section 117, Proviso 117.162 (Act No. 69)
Athletic Admissions Tax Revenue
This temporary proviso provides that for the current fiscal year, admissions tax revenue from
admissions to an athletic event of an accredited college or university shall be remitted to the
Department. The Department shall then allocate the same amount to the college or university to be
limited exclusively to supporting the college or university’s student-athletes through student aid,
scholarships, and/or related financial support.

30

LIST OF TEMPORARY PROVISOS
Temporary provisos were enacted as part of the 2025 annual budget – House Bill 4025, Part IB (Act
No. 69. They are effective only for the current State fiscal year (July 1, 2025 – June 30, 2026). They
expire on June 30, 2026, unless reenacted by the General Assembly. A brief summary of the
provisos can be found in this publication under the applicable subject matter categories.
The list is divided by subject matter with the provisos in numeric order.

NEW PROVISOS
Income Taxes
Proviso 109.17 Emergency Commodity Assistance Program
Proviso 117.208 Tax Rate
Property Taxes
Proviso 117.202 Political Subdivision Reimbursement
Miscellaneous Taxes
Proviso 49.24
Local Film Carry Forward

REENACTED PROVISOS
Income Taxes
Proviso 1A.9

Teaching Supplies and Materials – Reimbursement Amount Not Taxable or
Refundable Income Tax Credit
Proviso 1A.10 Teacher of the Year Awards – Not Subject to South Carolina Income Tax
Proviso 50.23
Job Development Tax Credit Program
Proviso 63.9
Governor’s Law Enforcement Officer of the Year Awards – Not Subject to South
Carolina Income Tax
Proviso 73.8
SC Broadband Office and SC Digital Opportunity
Proviso 109.15 Income Tax Withholding at Highest Individual Income Tax Rate
Proviso 117.111 Retail Facilities Revitalization Act – Repeal of Act Suspended
Proviso 117.163 Abandoned Textile Mills Credit – Effective Date of Notice of Intent to
Rehabilitate
Proviso 118.10 Consumer Protection Services – Individual Income Tax Deduction

31

Property Taxes
Proviso 1.38

Index of Taxpaying Ability – Imputed Value for Owner-Occupied Residential
Property
Proviso 92D.1 Improvements to Property Damaged by Catastrophic Weather Event – Time for
Improvements for Eligible Events
Proviso 109.11 Notification of Protest to Affected County and School District
Proviso 109.14 Manufacturing Property Tax Reduction Disallowed – Utilities
Proviso 113.6
Agricultural Use Exemption for Timberland – Impact of Additional County
Requirements
Proviso 117.37 Personal Property Tax Relief Fund
Proviso 117.111 Retail Facilities Revitalization Act – Repeal of Act Suspended
Proviso 117.160 Millage Calculation – Adjustments for 2020 Census
Sales and Use Taxes
Proviso 44.10

South Carolina Agriculture Tax Exemption Card (SCATE Card) – Fee Authorized
for Card
Proviso 88.5
Navy Base Intermodal Facility – Distribution Facility Eligibility
Proviso 109.16 Farm Fuels – Sales Tax Exemption
Proviso 117.36 Private Schools – Use Tax Exemption
Proviso 117.54 Respiratory Syncytial Virus Medicines Exemption – Effective Date
Proviso 117.58 Viscosupplementation Therapies – Sales and Use Tax Suspended
Proviso 117.138 Agribusiness Facilities – Material Handling and Construction Material
Exemptions
Proviso 117.168 Festival Craftsmen – Not Making Sales at Retail

Miscellaneous (Administrative and Procedural Matters, and Miscellaneous Taxes)
Administrative and Procedural Matters:
Provisos 41.2
3% Reduction on Interest Rate on Tax Refunds
and 117.81
Proviso 109.6
Voluntary Website Posting of Tax Return Information for Candidates and
Gubernatorial Appointees
Proviso 109.12 Certain License or Permit Applications – Electronic Filing Option under Penalties
of Perjury
Proviso 109.13 Advance Referendum Notification by Election Commission to SCDOR
Miscellaneous Taxes:
Proviso 1.12
Local Government School Buses – Motor Fuel User Fee Exemption
Proviso 33.10
Nursing Home Bed Franchise Fee – Suspension
Proviso 117.162 Athletic Admissions Tax Revenue
Proviso 118.7
Admissions Tax Rebate – Motorsports, Tennis, and Soccer Facilities

32