06/30/2026
What the Municipal Tax Relief Act allows
Governor McMaster signed S.866 into law on May 19, 2026. The Act creates a new municipal level funding tool that allows cities, with voter approval, to impose up to a 1% sales and use tax for up to eight years to fund “core government services,” including:
• Roads, streets, bridges
• Drainage
• Public parking
• Public safety facilities
• Civic buildings and related infrastructure
Because Greenville County has never enacted a local option sales tax under Chapter 10 or Chapter 37, Simpsonville qualifies under §5 41 120(A)(2) to place a referendum on the 2026 general election ballot, rather than waiting until 2028.
Projected impact
Under an eight year tax with the required 20% homeowner rebate, the State Office of Revenue and Fiscal Affairs estimates:
• $10.8 million in total tax credits to Simpsonville homeowners
o Equivalent to a 9.9 mill (17.8%) reduction in City property taxes
• $43.3 million available for eligible capital projects
The ordinance must include a project list, cost estimates, and a priority order for spending.
Who pays the tax
The tax applies only to discretionary purchases made within Simpsonville city limits.
Not taxed:
• Groceries
• Fuel
• Autos
• Utilities
• Rent/mortgages
• Prescription drugs
• Unprepared food
Taxed:
• Prepared food
• Retail goods
• Home goods
• Other discretionary items
Approximately 30% of revenue is projected to come from non residents.
What happens next
If Council approves the ordinance after the next two business meetings, the referendum will appear on the November 3, 2026 ballot. At that point, Simpsonville voters will decide whether to approve or deny the tax.
Council’s role is to determine whether the question should be placed before voters; the final decision belongs to the citizens.
How to learn more
The full ordinance is available on the City’s website:
https://www.simpsonville.com/meeting/city-council-committee-of-the-whole-meeting-06-23-2026/
I encourage residents to review the document, attend Council meetings, and reach out to any member of Council with questions.
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