A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 4-10-330, RELATING TO THE USE OF THE PROCEEDS FROM THE CAPITAL PROJECTS SALES TAX, SO AS TO ALLOW PROCEEDS TO BE USED FOR WORKFORCE HOUSING.
Summary
H3911 amends South Carolina law governing the use of local capital projects sales tax proceeds. Under current law, counties and related local entities may dedicate these tax revenues to a defined list of capital projects such as roads, public buildings, public safety facilities, utilities, flood control, beach renourishment, dredging, and related joint projects. This bill adds workforce housing to that list, expressly allowing capital projects sales tax revenue to be used for workforce housing as defined in Section 6-4-5.
The bill does not create a new tax or change the tax rate; instead, it expands the permissible uses of an existing local revenue source. In practical terms, local governments that have approved or may approve a capital projects sales tax referendum would gain another eligible category for spending those proceeds, potentially allowing infrastructure and housing-related investments to be paired in local capital plans. The act takes effect upon approval by the Governor.
Impact
By amending Section 4-10-330 of the South Carolina Code, the bill broadens the statutory list of allowable uses for capital projects sales tax proceeds to include workforce housing. This affects counties, municipalities, special purpose districts, and any jointly operated local projects that rely on this revenue source, giving them additional flexibility to finance housing-related capital needs alongside traditional infrastructure and public facility projects.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears to be a targeted expansion of local spending authority rather than a controversial overhaul of tax policy.
Contention
The main potential point of contention is whether capital projects sales tax revenue should be used for housing, since those funds have traditionally been reserved for infrastructure, public facilities, and other capital improvements. Supporters would likely view workforce housing as a necessary community investment and a practical use of local capital dollars, while opponents may argue that housing is outside the core purpose of the tax or could compete with transportation, public safety, and utility projects for limited revenue.
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 4-10-330, RELATING TO THE PURPOSES FOR WHICH PROCEEDS OF THE CAPITAL PROJECT SALES TAX MAY BE USED SO AS TO INCLUDE OPERATIONS FOR EMERGENCY SERVICES.