In May, South Carolina enacted the Municipal Tax Relief Act (S. 866), which allows municipalities to impose a 1% sales tax for property tax relief and infrastructure improvements.
Municipal Tax Relief Act
What does this mean for Mauldin?
This new state law allows the City of Mauldin to ask voters to approve this 1% sales tax, which would be in effect for up to 8 years.
The tax would apply to residents of Mauldin as well as visitors who dine at restaurants or stay in hotels within the city.
The revenue generated from this tax would fund specific street projects and related infrastructure, and a share would be returned to homeowners as a property tax credit.
BY THE NUMBERS
Sales Tax
Maximum Time
Total Property Tax Relief
Projected Revenue
TAX OVERVIEW
The tax would apply only to non-essential purchases within city limits. Everyday necessities would remain tax-exempt.
Homeowners would also receive a property tax credit, which could offset some or all of the additional sales tax. Please note, only owner-occupied homes qualify; renters and landlords would not receive this credit, per the state law.
Items that would be taxed
- Prepared food
- Retail and home goods
- Other discretionary purchases
Items that would not be taxed
- Groceries
- Gas
- Utilities
- Rent and mortgages
- Pharmacy items
Projected Tax Credits
The following table shows the projected tax credit for homeowners based upon home value:
| Fiscal year | Tax credit for property value $150,000 | Tax credit for property value $300,000 | Tax credit for property value $450,000 | Tax credit for property value $600,000 |
|---|---|---|---|---|
| 2026-27 | $3.01 | $6.03 | $9.04 | $12.05 |
| 2027-28 | $37.42 | $74.84 | $112.26 | $149.68 |
| 2028-29 | $38.93 | $77.87 | $116.80 | $155.74 |
| 2029-30 | $40.50 | $81.01 | $121.51 | $162.02 |
| 2030-31 | $42.14 | $84.28 | $126.43 | $168.57 |
| 2031-32 | $43.85 | $87.70 | $131.55 | $175.40 |
| 2032-33 | $45.61 | $91.23 | $136.84 | $182.45 |
| 2033-34 | $47.46 | $94.92 | $142.38 | $189.84 |
| 2034-35 | $45.27 | $90.53 | $135.80 | $181.07 |
Timeline
City Council is required to pass an ordinance to place the referendum on the November ballot.
If City Council decides to move forward with the referendum, the following timeline would apply:
News
HAVE QUESTIONS?
If you’d like more information about the Municipal Tax Relief Act and how it would affect Mauldin residents, please get in touch.