A longer sales-tax holiday, property tax relief, overtime pay in early SC bills
During the first Friday, Saturday and Sunday of every August, South Carolina shoppers don’t have to pay sales tax on clothes, shoes, computers and other items traditionally purchased for back to school.
Now one lawmaker wants that sales tax holiday to last the entire month.
Among the 327 prefiled bills proposed by lawmakers before the 2026 session is a bill from State Sen. Tom Fernandez, R-Dorchester, to extend the state’s annual three-day long sales tax holiday in August for back-to-school items to the whole month of August.
The sales tax holiday exempts items such as clothing, shoes, school supplies, headphones, planners, computers, printers, bedding and towels. The holiday takes place during the back-to-school shopping season.
In 2024, South Carolina shoppers bought more than $22.3 million in eligible items during the sales tax holiday and saved more than $1.3 million in sales tax, the Department of Revenue said.
Around the country, 16 other states have sales tax holidays in the summer ranging from a weekend to a month, according to the Tax Foundation.
Florida’s back-to-school sales tax holiday this year lasted the entire month of August.
Fernandez’s bill will be referred to the Senate Finance Committee. Fernandez is in his first term as a state senator.
No sales tax on baby items
State Sen. Carlisle Kennedy, R-Lexington, wants to exempt baby formula, baby food and baby clothes for children 36 months and under from sales tax.
This bill may stem from Kennedy’s personal recent experience. He and his wife, Brooke, had their first child last year.
An attempt to reduce insurance rates
Thirteen House members, most of whom sit on the Labor, Commerce and Industry Committee have proposed the “Insurance Rate Reduction and Policyholder Protection Act” aimed at lowering insurance rates in the state. The legislation is sponsored by the 13 members of an ad hoc study set up by House Speaker Murrell Smith.
The ad hoc insurance committee is looking at ways to bring down the costs of property and automobile insurance rates that are increasing. The committee was led by state Rep. Gary Brewer, who is the lead sponsor on the bill.
Reducing property tax burdens
Nine prefiled bills deal with different forms of property tax relief, with state Rep. Harriet Holman, R-Dorchester proposing six pieces of legislation.
Holman proposes exempting one vehicle from property taxes for people over the age of 65, creating additional exemptions for seniors and exemptions for disabled veterans.
State Reps. Joe Bustos, R-Charleston, and Gil Gatch, R-Dorchester, want to exempt the houses of people over the age of 70 from property tax.
State Rep. Josiah Magnunson, R-Spartanburg, wants to allow people to defer property taxes on property inherited from a direct family member, if a person meets certain income requirements.
For people who just want to buy a home, state Rep. Courtney Waters, D-Charleston, proposed a first-time home buyer tax credit for South Carolinians. The federal government had a first-time homebuyer tax credit program from 2008 through 2010.
Higher compensation
Waters wants to require overtime pay for more than 8 hours of work in a day or for someone more than 40 hours in a week. She also wants to prohibit unpaid trial and break-in periods.
The bill also would exempt the overtime pay requirement for retail employees who make more than four times the minimum wage and have more half of their pay from commissions.
Also, employees who are under collective bargaining agreements that have expressly established overtime rules, railroad employees, taxi or limo drivers, agricultural employees and employees of businesses with less than $1 million in gross revenues would be exempt under this bill.
State Rep. Tiffany Spann-Wilder, D-Charleston, wants to increase minimum weekly workers compensation payments to $150 from $75 starting in July 2027.
Rounding transaction totals
State Rep. Bill Taylor also wants to require merchants who are unable to make exact change to round transactions to the nearest nickel.
This may become more necessary as the U.S. Mint has ended production of the penny.
This story was originally published December 19, 2025 at 5:00 AM.
