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H 3332

Statewide millage

2025-2026 Regular Session Introduced by Gilda Cobb-Hunter and 1 co-sponsor

Establishes a statewide property tax millage to fund public school operations and capital, replacing local district millages and ensuring debt-service guarantees.

Referred to Committee on Ways and Means
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Bill Summary · H 3332

Summary — H 3332: “Statewide millage”

Note on sources: The available file includes two different pieces of legislation (a South Carolina “statewide millage” proposal and a Massachusetts bill about the 401(k) CORE program). This summary focuses on the “Statewide millage” text (adds S.C. Code §12‑37‑130 and amends §12‑37‑220), which appears to be the body of the proposal described by the title. If you need a separate summary of the Massachusetts 401(k) CORE language included in the file, say so.

Purpose / Intent

Establish a statewide property tax millage, set annually by the General Assembly, to raise revenue for public school operations and capital improvements. The statewide millage would replace (be in lieu of) property tax millage for school operations or capital improvements that local school districts presently impose.

Key provisions

  • Adds Section 12‑37‑130 to the S.C. Code:

    • Requires the General Assembly, annually and by joint resolution, to impose a state property tax millage on all real and personal property subject to property tax in the state.
    • Directs that the statewide millage be used to raise revenue for public school operations and capital improvements.
    • Declares the statewide millage to be in lieu of any property tax millage imposed by an individual school district for school operations or capital improvements.
    • Requires the joint resolution to specify the method for distributing collected statewide millage revenue to individual school districts for the applicable fiscal year.
    • Requires the General Assembly each year to supply districts with outstanding bonded indebtedness appropriate funds to cover debt service on outstanding bonds.
    • Limits disparity in funding for capital improvements between similarly populated districts to no more than 50%.

  • Amends Section 12‑37‑220(B) (property tax exemptions) by adding item (54):

    • Exempts 100% of the fair market value of all real and personal property from any property tax millage imposed by an individual school district for school operations and bonded indebtedness (to the extent not already exempt).
    • Extends existing exemptions under §12‑37‑250 and another listed item to the new statewide millage for school operations.

  • Effective date:

    • The act takes effect upon the Governor’s approval and applies to fiscal years beginning after June 30, 2026.

Who would be affected

  • Property owners: local school district property tax millage for operations/capital would be eliminated and replaced by a statewide millage. The net tax change for any owner depends on the statewide millage rate and the distribution formula.
  • School districts: local authority to levy property tax for operations and capital would be removed; districts would receive funds from the statewide millage according to the distribution plan set annually by the General Assembly. Districts with outstanding bonds would be guaranteed funding for debt service.
  • State government / General Assembly: gains authority to annually set a statewide millage and determine distribution rules; assumes a greater role in school funding and capital investment decisions.
  • Tax administration: state/local tax administration must adapt to collect a statewide millage and implement the statutory distribution mechanism.

Potential fiscal and policy impacts (high-level)

  • Centralizes school funding: shifts levy authority and distribution decisions from local districts to the state legislature, potentially reducing variation in local property tax rates for school funding.
  • Redistribution effects: depending on the formula, some districts/taxpayers could receive more state-provided school funding and others less (winners/losers).
  • Debt-service guarantee: ensures bondholders/districts receive debt service coverage from state-collected revenue, reducing exposure for districts with bonded debt.
  • Equity constraint: the 50% cap on disparity for capital improvements between similarly populated districts limits extreme funding gaps but allows significant variation.
  • Administrative/implementation costs: creation of collection/distribution mechanisms and transition from dozens/hundreds of local levies to a single statewide millage.

Procedural / timeline notes (from provided actions)

  • The draft text states the act applies to fiscal years beginning after June 30, 2026 (i.e., effective FY 2026‑27).
  • The provided legislative action list contains dates and events (introduced, referrals, hearings scheduled/rescheduled). Those records appear to mix entries from different jurisdictions and other bills; verify the correct legislative docket and jurisdiction for up‑to‑date status and hearing dates.

If you want, I can:
- Produce a short two‑column “winners/losers” scenario analysis (district-level examples) based on sample distribution formulas; or
- Prepare a plain‑language one‑page explainer for property owners describing how their tax bill might change under a hypothetical statewide millage rate.

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

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