Certain South Carolina counties can impose taxes for school improvements

Eligible counties can impose the sales tax for school improvements. This route covers counties entirely within one school district that do not meet the tax collection requirements in subsection (A). The county must impose only the Article 1 local option sales tax, and that tax must have run for less than 10 years when the school improvements tax starts. State lodging tax collections must be below $70,000 in the most recent fiscal year with complete figures. The county governing body must adopt the required approval resolution. The law took effect May 18, 2026. Once a county meets these eligibility rules, it remains eligible.

Eligible two-district counties can impose the tax and must use 10% of proceeds for property tax relief. Two school districts must together cover the entire county. This route covers counties that do not meet subsection (A)'s tax collection requirements. The county must impose no taxes under this county sales tax chapter when the referendum takes place. The county governing body must adopt the required approval resolution. The 10% share must offset property taxes used to repay existing general obligation bonds, which are backed by the government's promise to repay. Revenue must be divided between the districts in the shares agreed to and stated in the required resolution. The law took effect May 18, 2026. Once a county meets these eligibility rules and imposes the tax, it remains eligible.