South Carolina lawmakers weigh possible property tax changes as local leaders warn of funding challenges

COLUMBIA, S.C. (WIS) - South Carolina lawmakers are considering changes to the state’s property tax system, but local leaders warn that reducing tax revenue could make it harder to fund essential services.

Property taxes help pay for law enforcement, road maintenance and other local government operations. Local leaders say any reduction in that revenue would require another way to make up the difference, which could be challenging for smaller rural communities.

“Any change to property taxes could have a devastating effect on Lincolnville, while some of our members could absorb it because they have the revenues to spread that out,” said Todd Glover, executive director of the Municipal Association of South Carolina.

Some counties believe shifting more responsibility for education funding to the state could ease the burden on local property taxpayers. That was among the ideas presented to a subcommittee examining South Carolina’s tax system.

Owen McBride of the South Carolina Association of Counties said removing school operating costs from property taxes could reduce property tax bills by 70%, though he acknowledged the change would be politically challenging.

“It’s not a simple fix, but the complicated fix that would fix the problem but is politically very challenging would be to remove school operating off of property taxes,” McBride said.

Sen. Sean Bennett, R-Dorchester, said the committee must consider how to fund services if property taxes are reduced.

“If it is not property taxes, it has to be something that provides for those services,” Bennett said. “So our challenge for the committee is to determine whether or not there is a better system.”

The discussions are part of a broader effort to overhaul the state’s tax code while maintaining services. It is unclear whether the committee will meet again before the legislative session begins, but lawmakers hope to have legislation ready by early 2027.

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