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.
Page 1 of 3
S. 0288
Fiscal Impact Summary
This bill allows a local governing authority to provide, by ordinance, for the voluntary transfer of
development rights permitted on one parcel of land to another parcel of land that restricts or
prohibits further development of the sending property and increases the density or intensity of
the receiving property. The ordinance must satisfy certain conditions as specified in the bill.
Additionally, the bill allows two or more local governing authorities to join one another in
setting up a transfer of development rights program.
Due to the permissive nature of the bill, the overall expenditure impact on local governments is
undetermined and will vary by locality. The Revenue and Fiscal Affairs Office (RFA) contacted
all county governments and the Municipal Association of South Carolina (MASC) regarding the
fiscal impact of this legislation and received responses from three counties and MASC. The three
responding counties indicate that the bill will have no expenditure impact unless the counties
choose to participate in a transfer of development rights program. One county further indicates
that if it were to implement such a program, expenses may increase due to the potential need to
hire an outside consultant or dedicate staff time to develop the program but reports that the cost
is currently undetermined.
MASC indicates that if a local government decides to enact an ordinance providing for the
voluntary transfer of development rights, the expenditure impact will vary depending on how the
ordinance is implemented and the specific circumstances of each transfer since the bill allows
local governments to structure transfer of a development rights program as they see appropriate.
MASC also notes that although there may be administrative costs associated with the
implementation and management of a transfer of development rights program, a local
government may enact fees to recoup (in whole or part) such costs.
Further, MASC notes that land held in conservation may reduce local property tax revenues.
However, the bill provides that local governments may purchase development rights and hold
them for conservation purposes or resale, and MASC reports that the resale of these rights may
increase revenues, depending on the terms of the transaction. Due to the permissive nature of the
bill, the revenue impact on local governments is undetermined and will vary by locality.
Bill Number: S. 0288 Introduced on Januar
y 29, 2025
Subject: Transfer of Development Rights
Requestor: Senate Judiciary
RFA Analyst(s): Bryant
Impact Date: February 20, 2025
Page 2 of 3
S. 0288
Explanation of Fiscal Impact
Introduced on January 29, 2025
State Expenditure
N/A
State Revenue
N/A
Local Expenditure
This bill allows a local governing authority to provide, by ordinance, for the voluntary transfer of
development rights permitted on one parcel of land to another parcel of land that restricts or
prohibits further development of the sending property and increases the density or intensity of
the receiving property. The ordinance must satisfy certain conditions as specified in the bill.
Additionally, the bill allows two or more local governing authorities to join one another in
setting up a transfer of development rights program.
Due to the permissive nature of the bill, the overall expenditure impact on local governments is
undetermined and will vary by locality. RFA contacted all county governments and MASC
regarding the fiscal impact of this legislation and received responses from three counties and
MASC. The three responding counties indicate that the bill will have no expenditure impact
unless the counties choose to participate in a transfer of development rights program. One county
further indicates that if it were to implement such a program, expenses may increase due to the
potential need to hire an outside consultant or dedicate staff time to develop the program but
reports that the cost is currently undetermined.
MASC indicates that if a local government decides to enact an ordinance providing for the
voluntary transfer of development rights, the expenditure impact will vary depending on how the
ordinance is implemented and the specific circumstances of each transfer since the bill allows
local governments to structure transfer of a development rights program as they see appropriate.
MASC also notes that although there may be administrative costs associated with the
implementation and management of a transfer of development rights program, a local
government may enact fees to recoup (in whole or part) such costs.
Local Revenue
This bill allows a local governing authority to provide, by ordinance, for the voluntary transfer of
development rights permitted on one parcel of land to another parcel of land that restricts or
prohibits further development of the sending property and increases the density or intensity of
the receiving property. The ordinance must satisfy certain conditions as specified in the bill.
Additionally, the bill allows two or more local governing authorities to join one another in
setting up a transfer of development rights program.
RFA contacted all county governments and MASC regarding the fiscal impact of this legislation
and received responses from three counties and MASC. MASC notes that land held in
conservation may reduce local property tax revenues. However, the bill provides that local
__________________________________
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.
Page 3 of 3
S. 0288
governments may purchase development rights and hold them for conservation purposes or
resale, and MASC reports that the resale of these rights may increase revenues, depending on the
terms of the transaction. Due to the permissive nature of the bill, the impact on local government
revenues is undetermined and will vary by locality.