The "Municipal Tax Relief Act" proposed in South Carolina aims to amend the state code by adding Chapter 41 to Title 5, allowing certain municipalities to impose a sales and use tax of up to one percent. This tax is intended to provide property tax relief for owner-occupied homes and to finance specific projects. The bill outlines the process for municipalities to enact this tax, which includes holding a referendum during the next general election, specifying the purposes for which the tax revenues will be used, and ensuring that at least twenty percent of the collected revenues are allocated to provide a credit against municipal ad valorem tax liabilities.

Additionally, the bill stipulates that the tax must be administered by the South Carolina Department of Revenue and collected in the same manner as existing sales and use taxes. It also includes provisions for the distribution of tax revenues to municipalities, the calculation of property tax credits, and restrictions on reimposing the tax if it would cause the cumulative sales tax rate to exceed nine percent in any part of the municipality. The act will take effect upon the Governor's approval.