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. 0439
Fiscal Impact Summary
This bill increases the reimbursement cap for the manufacturing property tax exemption,
pursuant to §12-37-220(B)(52) from $170,000,000 to $300,000,000. The manufacturing property
tax exemption exempts 42.8571 percent of the property tax value of manufacturing property.
This exemption is reimbursed by the State to local governments from the Trust Fund for Tax
Relief up to $170,000,000. In any year in which reimbursements are projected by Revenue and
Fiscal Affairs (RFA) to exceed the cap, the exemption amount must be proportionally reduced so
as not to exceed the reimbursement cap.
The Department of Revenue (DOR) anticipates being able to administer this change within the
normal course of agency business. Therefore, this bill will have no expenditure impact for
implementation.
This bill will increase the reimbursement from the Trust Fund for Tax Relief by $30,138,841 in
FY 2025-26. It will also decrease General Fund revenue from individual and corporate income
tax available for appropriation by a corresponding $30,138,841 to fund the increase in the
reimbursement from the Trust Fund for Tax Relief. The amount will increase annually and is
currently projected to reach the new maximum in FY 2028-29.
Estimated Increased Manufacturing Property Tax Reimbursement
Projected
Reimbursement
Increase above
$170,000,000
FY 2025-26(e) $200,138,841 $30,138,841
FY 2026-27(e) $236,734,963 $66,734,963
FY 2027-28(e) $280,022,820 $110,022,820
FY 2028-29 (e) $331,226,021 $130,000,000
Explanation of Fiscal Impact
Introduced on March 11, 2025
State Expenditure
This bill increases the reimbursement cap for the manufacturing property tax exemption,
pursuant to §12-34-220(B)(52) from $170,000,000 to $300,000,000. The manufacturing property
Bill Number: S. 0439 Introduced on March 11, 2025
Subject: Manufacturin g Property Tax Exemption
Requestor: Senate Finance
RFA Anal
yst(s): Miller
Impact Date: March 17, 2025
Page 2 of 3
S. 0439
tax exemption exempts 42.8571 percent of the property tax value of manufacturing property.
This exemption is reimbursed by the State to local governments from the Trust Fund for Tax
Relief up to $170,000,000. In any year in which reimbursements are projected by RFA to exceed
the cap, the exemption amount must be proportionally reduced so as not to exceed the
reimbursement cap.
DOR anticipates being able to administer this change within the normal course of agency
business. Therefore, this bill will have no expenditure impact for implementation.
State Revenue
This bill increases the reimbursement cap for the manufacturing property tax exemption,
pursuant to §12-34-220(B)(52) from $170,000,000 to $300,000,000.
As discussed in the local revenue section of this impact, this bill will increase the reimbursement
from the Trust Fund for Tax Relief by $30,138,841 in FY 2025-26. It will also decrease General
Fund revenue from individual and corporate income tax available for appropriation by a
corresponding $30,138,841 to fund the increase in the reimbursement from the Trust Fund for
Tax Relief. The amount will increase annually and is currently projected to reach the new
maximum in FY 2028-29.
Estimated Increased Manufacturing Property Tax Reimbursement
FY 2025-26(e) $30,138,841
FY 2026-27(e) $66,734,963
FY 2027-28(e) $110,022,820
FY 2028-29(e) $130,000,000
Local Expenditure
N/A
Local Revenue
This bill increases the reimbursement cap for the manufacturing property tax exemption,
pursuant to §12-34-220(B)(52) from $170,000,000 to $300,000,000. The exemption is for
42.8571 percent of manufacturing property value. In any year in which reimbursements are
projected by RFA to exceed the cap, the exemption amount must be proportionally reduced so as
not to exceed the reimbursement cap. Based on the growth rate of 18.29 percent for the
manufacturing property tax exemption from FY 2022-23 to FY 2024-25, RFA projected the
reimbursement would meet the $170,000,000 cap beginning in FY 2025-26.
BEA’s Current Projected Manufacturing Property Tax Reimbursement
FY 2023-24 $143,043,898
FY 2024-25(e) $169,200,000
FY 2025-26 (e) $170,000,000
__________________________________
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. 0439
The following table displays the projections for the manufacturing property tax reimbursement
using the same growth rate of 18.29 percent.
Estimated Increased Manufacturing Property Tax Reimbursement
Projected
Reimbursement
Increase above
$170,000,000
FY 2025-26(e) $200,138,841 $30,138,841
FY 2026-27(e) $236,734,963 $66,734,963
FY 2027-28(e) $280,022,820 $110,022,820
FY 2028-29 (e) $300,000,000 $130,000,000
Based on these estimates, this bill will increase the reimbursement from the Trust Fund for Tax
Relief by $30,138,841 in FY 2025-26. The amount will increase annually and is currently
projected to reach the new maximum in FY 2028-29. After FY 2028-29, the exemption will be
proportionally reduced so as not to exceed the reimbursement cap.