Panel approves amendment to expand eligibility for education capital improvement sales tax

A legislative subcommittee gave a favorable report to House Bill 45 89 after adopting an amendment to change the bill's eligibility threshold for the educational capital improvement sales and use tax.

Staff explained the bill would add new eligibility criteria for counties that have imposed only the local option sales tax for less than 10 years: the county must be encompassed by one entire school district and must have collected less than a threshold amount in state accommodations taxes in the most recent fiscal year. The bill as filed set that threshold at $50,000. Representative Gilliam told the committee that rural districts in his area need the flexibility to raise capital funds for school buildings.

"We don't have enough for schools, the capital improvements that we gotta have," Representative Gilliam said, urging support for the measure as a means to allow small, rural counties to build or repair schools.

Following updated figures showing Union County collected about $55,000, a sponsor offered an amendment to raise the accommodations-tax threshold to $70,000 so Union County would remain eligible. The amendment was put to the committee and approved by voice and roll call. By roll call the bill received a favorable report, 4–0.

During questioning, staff read the list of the 10 counties currently using the local option sales tax (Aiken, Chesterfield, Jasper, Horry, Berkeley, Charleston, Darlington, Kershaw, Anderson and Cherokee) and confirmed the bill would grandfather those counties.

The amended bill will move forward per legislative procedures.