SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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S. 0004
Fiscal Impact Summary
This bill establishes the South Carolina Home Attainability Act, which requires local
governments to study ways to improve the affordability of housing when adopting regulations,
sets timelines for the approval of plats, and limits the taxes and fees charged for the construction
of a home or group of homes. This bill also requires local governments to allow builders to hire a
certified third-party inspector to perform the duties of a local inspector of buildings. Further, this
bill clarifies plans and specifications for certain dwellings are exempt from provisions regulating
the profession of architecture.
This bill will have no expenditure impact on the Department of Labor, Licensing and Regulation
(LLR) or the Building Codes Council as LLR anticipates the bill is not likely to have a
significant impact to the responsibilities of the agency or board. Any expenses to implement the
provisions of the bill can be managed within existing appropriations.
The Revenue and Fiscal Affairs Office (RFA) contacted the Municipal Association of South
Carolina (MASC) and all counties to determine the local expenditure impact of this bill. Based
on MASC’s response, this bill may result in a significant undetermined expenditure impact for
municipalities. MASC anticipates varied implementation expenditure impacts to study the
affordability of housing. MASC also anticipates an undetermined impact to municipalities from
expedited plan or plat reviews dependent upon expenditures for additional staff, civil liability if
flawed projects are approved, and costs associated with confusion while attempting to comply
with conflicting plan or plat approval deadlines. Further, MASC anticipates capping taxes and
fees charged by local governments may lead to intergovernmental disputes and legal costs to
determine how each jurisdiction will adjust fees. MASC also anticipates allowing builders to hire
a third-party may lead to substandard construction and increased insurance costs for municipal
coverage. Additionally, responses received from the counties of Fairfield, Oconee, and Richland
indicate the local expenditure impact on counties is undetermined. Oconee anticipates
accelerating approval of plans or plats may lead to poorly planned developments necessitating
expenditures to resolve infrastructure problems. Therefore, the local expenditure impact is
undetermined.
This bill may have an impact on local revenue. MASC anticipates caps on the cumulative
amount of taxes may result in an undetermined reduction of local revenue. The impact may be
largest if property taxes are considered to be taxes charged on the construction of a home or
Bill Number: S. 0004 Introduced on Januar
y 14, 2025
Subject: Local Government Plannin g
Requestor: Senate Labor, Commerce, and Industry
RFA Analyst(s): Welsh
Impact Date: March 20, 2025
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S. 0004
group of homes as outlined in the bill. Additionally, the counties of Fairfield, Oconee, and
Richland all noted their reliance on revenues derived from permit and inspection fees to help
offset operating costs. Richland noted the exact impact is undetermined dependent upon the
number of builders that utilize a third-party building inspector. Oconee anticipates capping total
taxes and fees at 10 percent may result in an undetermined loss of revenue. Fairfield county
reports it collected permit and inspection revenues totaling nearly $300,000 in FY 2024.
Therefore, the impact on local revenue is undetermined.
Explanation of Fiscal Impact
Introduced on January 14, 2025
State Expenditure
This bill establishes the South Carolina Home Attainability Act, which requires local
governments to study ways to improve the affordability of housing when adopting regulations,
sets timelines for the approval of plats, and limits the taxes and fees charged for the construction
of a home or group of homes. This bill also requires local governments to allow builders to hire a
certified third-party inspector to perform the duties of a local inspector of buildings. Further, this
bill clarifies plans and specifications for certain dwellings are exempt from provisions regulating
the profession of architecture.
LLR indicates the bill is not likely to have a significant impact on the responsibilities of the
agency or the Building Codes council and any new duties can be managed with existing
appropriations.
State Revenue
N/A
Local Expenditure
This bill establishes the South Carolina Home Attainability Act. This act requires local
governments to study ways to improve the affordability of housing when adopting regulations,
sets timelines for the approval of plats, and limits the taxes and fees charged for the construction
of a home or group of homes. This bill also requires local governments to allow builders to hire a
certified third-party inspector to perform the duties of a local inspector of buildings. Further, this
bill clarifies plans and specifications for certain dwellings are exempt from provisions regulating
the profession architecture.
RFA contacted MASC and all counties to determine the local expenditure impact of this bill.
Based on MASC’s response, this bill may result in a significant undetermined expenditure
impact for municipalities. MASC anticipates ambiguity in the language requiring local
governments to study ways to increase the affordability of housing will lead to varied
implementation expenses across cities and towns. MASC also anticipates an undetermined
impact to municipalities from expedited plan or plat reviews. MASC notes that accelerating this
review period may necessitate expenditures for additional staff, lead to civil liability if flawed
projects are approved, and may create costs associated with confusion amongst local
governments seeking to comply with a sixty-day timeline for action on plans or plats in Section
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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S. 0004
6-29-1150 in current law. Further, MASC anticipates capping the combination of taxes and fees
charged by a counties and municipalities may lead to intergovernmental disputes and legal costs
to determine how each level of government will adjust fees to comply with the cap. MASC also
anticipates allowing builders to hire a third-party inspector to perform the duties of the local
inspector may lead to substandard construction and, as a result, increased insurance costs for
municipal coverage.
Additionally, responses received from the counties of Fairfield, Oconee, and Richland indicate
the local expenditure impact on counties is undetermined. While the counties’ responses
primarily focused on changes to revenue, Oconee anticipates accelerating the approval of plans
or plats may lead to rushed approvals of poorly planned developments and necessitate
expenditures to resolve resulting infrastructure problems. Based on these responses, RFA
anticipates this bill will have an undetermined local expenditure impact.
Local Revenue
This bill caps the combination of all taxes and fees charged to a builder or developer by local
governments at ten percent of the sales price of a home or group of homes. This bill also allows a
builder to hire a certified third-party inspector to perform the duties of the local inspector of
buildings.
This bill may have an impact on local revenue. MASC anticipates caps on the cumulative
amount of taxes may result in an undetermined reduction of local revenue. The impact may be
largest if property taxes are considered to be taxes charged on the construction of a home or
group of homes as outlined in the bill. Additionally, the counties of Fairfield, Oconee, and
Richland all noted their reliance on revenues derived from permit and inspection fees to help
offset operating costs. Richland noted the exact impact is undetermined dependent, in part, upon
the number of builders that elect to utilize a third-party building inspector. Oconee anticipates
capping total taxes and fees at 10 percent may result in an undetermined loss of revenue that
would shift the financial burden to taxpayers or necessitate a reduction in essential services.
Fairfield county reports it collected permit and inspection revenues totaling nearly $300,000 in
FY 2024. Based on these responses, RFA anticipates this bill will have an undetermined local
revenue impact.