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
Revenue for Infrastructure Improvements
TAX OVERVIEW
The 1% sales 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 passed an ordinance to place the 1% sales tax referendum on the November ballot.
July 20, 2026
City Council voted 4-1 to pass the ordinance on first reading
August 3, 2026
City Council voted 5-1 to pass the ordinance on second reading
October 21, 2026
Ballot question and project list to be published in newspaper
November 3, 2026
Election Day
May 1, 2027
Effective day of tax collection if measure passes
August 2027
First quarterly distribution to the City of Mauldin
Infrastructure Projects
The 1% sales tax would generate an estimated $19.6 million for infrastructure improvements, which would include the following:
- $15.6 million for the repaving and improving of roadways, including drainage systems, curbs and sidewalks
- $4 million for Fire Station 5
Proposed street projects are highlighted on the maps below. The first map shows an overview of all proposed street projects in the city, and additional maps zoom in on specific areas.
HAVE QUESTIONS?
If you’d like more information about the 1% sales tax and how it would affect Mauldin residents, please get in touch.