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Bill

H 5093

Gross proceeds

2025-2026 Regular Session Introduced by Bruce Bannister and 5 co-sponsors

Excludes from gross proceeds the amounts paid by state/local governments for ESInet/NG911 service contracts, narrowing the sales tax base starting July 1, 2026.

Effective date 07/01/26
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WeVote Research Nonpartisan
Bill Summary · H 5093

Summary of Bill H 5093 (2025-2026) – South Carolina

Title

Gross proceeds

Purpose and intent

  • The bill amends the South Carolina Code of Laws to modify the definition of “gross proceeds of sales” for sales tax purposes.
  • Specifically, it excludes certain payments made by state and local governments for contracts related to the Emergency Services IP Network (ESInet) in support of Next Generation 911 (NG911) in South Carolina.

Key provisions

  • Amends Section 12-36-90(2) to add a new subparagraph:
    • (m) Excludes from gross proceeds amounts paid for contracts for services entered into by the State or political subdivisions thereof, for the Emergency Services IP Network, also known as ESInet, in support of Next Generation 911 in South Carolina.
  • Effective date:
    • July 1, 2026.

Who or what is affected

  • State and local governments (political subdivisions) that enter into ESInet/NG911-related service contracts.
  • For purposes of the state sales tax (gross proceeds of sales), certain payments under these ESInet contracts would be excluded from the calculation of gross proceeds.

Procedural and timeline aspects

  • Introduction and readings:
    • Introduced February 4, 2026; read first time and referred to the Committee on Ways and Means.
  • Committee action:
    • February 4, 2026: Referred to Ways and Means.
    • April 21, 2026: Committee report favorable (Ways and Means) reported.
  • Effective date:
    • The act becomes effective July 1, 2026.

Potential impact

  • Tax base change:
    • The exclusion reduces the amount treated as gross proceeds of sales for ESInet-related government contracts, potentially reducing local/state sales tax revenues attributed to these transactions.
  • Fiscal/operational implications:
    • Governments entering ESInet/NG911 service contracts may experience lower sales tax obligations on those contract payments.
    • The policy aligns tax treatment with government-funded critical communications infrastructure projects.

Notable details

  • No other changes to the definition of gross proceeds are proposed; the amendment is narrowly targeted to ESInet/NG911 service contracts.
  • The bill includes multiple co-sponsors from various House members, indicating bipartisan interest in ESInet/NG911 funding and tax treatment.

If you’d like, I can add a quick comparison to current law (pre-enactment) and outline potential revenue impact ranges based on assumed ESInet contract volumes.

Compiled from official sources — confirm details with the bill’s official record.

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