The bill H. 4602 aims to amend the South Carolina Code of Laws by adding Section 6-11-347, which mandates that special purpose districts must adjust their millage rates to reflect the removal of service responsibilities following the consolidation of such services. Specifically, the bill requires that any special purpose district that consolidates or removes services must reduce its current millage rate for property tax purposes by the next fiscal year. The South Carolina Revenue and Fiscal Affairs Office, in collaboration with the relevant county, will calculate the adjusted millage rate based on historical service expenditures, current service responsibilities, and revenue needs for essential services like fire and police protection.

Additionally, the bill stipulates that the adjusted millage rate must be submitted to the appropriate county auditor by June 1st for implementation in the upcoming property tax cycle. The South Carolina State Auditor is tasked with conducting an annual review of any special purpose district that reduces its millage rate in compliance with this new requirement for a period of three years. If a district fails to comply with the millage reduction, the State Treasurer is authorized to withhold ten percent of the district's state-distributed revenue until compliance is achieved. This act will take effect upon approval by the Governor and will first apply to tax years after 2025.

Statutes affected:
12/17/2025: 6-11-347
Latest Version: 6-11-347