Through an all-inclusive process involving hundreds of municipal officials, the Municipal Association of SC identified major challenges facing cities and towns in the state. The 2025 – 2026 Advocacy Initiatives represent solutions to challenges that can be addressed through changes to state law.
- Protect the authority of cities and towns to regulate short-term rentals within municipal boundaries.
Local leaders, working with residents, neighborhoods and businesses, know best how to regulate and manage short-term rentals. Local regulation of short-term rental properties is critical for public health and safety, as well as the general viability and preservation of neighborhoods. A one-size-fits-all statewide approach in diverse South Carolina cities and towns is not the solution. Local leaders working with residents and businesses are at the best level of government to determine the level of regulation of short-term rentals.
- Allow cities and towns with no property tax millage to impose a millage within certain limitations.
Millage is a vital tool for cities and towns to generate revenue for law enforcement, emergency and fire services, road maintenance, parks and community programs. Legislation codifying that cities and towns have the ability to impose an operating millage will allow communities to generate much-needed revenue that will improve and maintain quality of life for local residents. This legislation would clarify that cities and towns without an operating millage may impose a millage within certain limitations.
- Support additional funding in the state budget and other resources for mental health services.
Officials in cities and towns know firsthand how the lack of mental health services can impact a community. Additional mental health funding and resources would give cities and towns more opportunities to offer services to help residents. Mental health issues affect people of all ages, backgrounds and socioeconomic statuses. Prioritizing mental health can help address hardships in the community and improve public health outcomes across the board.
- Allow cities and towns to close doughnut holes, or enclaves, in their municipal limits through a local annexation process while preserving current annexation powers.
Enclaves, or doughnut holes, are unincorporated areas surrounded by a municipality. Enclaves are a logistical nightmare for city and county officials, who have to duplicate services to pick up garbage, fill in potholes and provide other local services. They pose a danger to public safety because police and firefighters have to determine emergency response. The duplicative services they create also drive up the cost of government. The Association will continue to advocate for legislation to close doughnut holes and fight against any legislation that preempts municipalities’ authority from current annexation laws.
- Support efforts to help solve the liquor liability insurance burden on small businesses.
The rising cost of liquor liability insurance in South Carolina is negatively impacting small businesses and forcing businesses to close. A statewide solution is needed to solve this problem that is creating burdensome circumstances for local restaurants.
Downtowns are a vital place in cities and towns. Local officials work tirelessly to attract businesses, including restaurants, to downtowns where residents and visitors can enjoy a positive quality of life. The increasing insurance costs are causing restaurants to close and leave abandoned buildings in downtowns.
- Allow cities and towns to place a Municipal Project Sales Tax penny on a referendum for city residents to vote on additional revenue for capital projects in their city.
Adequate revenue to address challenges posed by population growth is crucial for the sustained health of South Carolina cities and towns. Having the ability to place a municipal project sales tax penny on a referendum allows local governments to generate dedicated funding for essential projects without solely relying on property taxes. This financing method can be more equitable, as it spreads the tax burden across residents and visitors alike. Additionally, a referendum gives residents a direct voice in funding decisions, fostering community engagement and accountability.
- Increase flexibility for cities and towns for local accommodations tax revenue.
State law requires certain cities and towns to expend 30% of local accommodations taxes on advertising and promotion of tourism to develop and increase tourist attendance. Municipalities with abundant tourism attendance should be able to spend 30% on other needs specific to their area instead, such as other critical tourism infrastructure needs. State law also provides for the first $25,000 to be allocated to the local government’s general fund. The amount allocated to the general fund should be increased to reflect current local government needs.
- Support legislation that clarifies terms of office for local elected officials.
The right to protest an election is a fundamental element of civic engagement, but when it is misused, it undermines the democratic process, inhibits the legitimate voices of constituents and, in recent elections, prevents rightly elected officials from beginning their term until the protest has been decided in a court of law.
Legislation that requires courts to give election appeals the priority of consideration strikes a right balance between upholding the right to protest and preserving the right of duly elected municipal officials to begin their term.
- Protect the local election process.
The Municipal Association supports the continued authority and autonomy for cities and towns to administer elections according to minimum standards that foster transparency and accountability. Striking a balance between increasing efficiency in the municipal election process and minimizing undue burdens and overreach is also crucial to ensure that local issues are prioritized and addressed effectively.
- Support funding for police equipment and infrastructure.
State support for funding police equipment for local law enforcement is crucial because it allows agencies to acquire necessary tools and technology to effectively protect their communities, maintain officer safety, respond to evolving criminal tactics and build public trust by ensuring officers are equipped to handle modern challenges, all while potentially reducing crime rates. Well-equipped police forces can better serve and safeguard their jurisdictions.
- Support legislation that allows retirees to return to work with no earnings cap placed on their retirement benefits.
The Association has supported this initiative in the past and will continue to advocate for a permanent change in the law to allow retirees to return to work. Allowing retirees to return to work without an earrings cap would help local law enforcement by alleviating the burden of municipalities not being fully staffed. There are tremendous benefits in allowing a retiree to return to work because of the collective experience and institutional knowledge they provide for less-experienced officers.