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The State House Gavel
The State House Gavel shares updates about the South Carolina General Assembly, including legislative actions, debates and discussions. Featuring news and interviews, so you have access to the latest developments in policy and decisions that shape South Carolina’s future.

The State House Gavel: Income tax plan, tort reform and $1.8B error report in Week 11

South Carolina Public Radio | By Maayan Schechter,
Gavin Jackson, Russ McKinney
Published March 25, 2025 at 6:01 AM EDT
South Carolina House Ways and Means Chairman Bruce Bannister, R-Greenville, left, and Senate Finance Chairman Harvey Peeler, R-Gaffney, right, vote as the conference committee reached a budget deal, Friday, June 21, 2024, in Columbia, S.C. (AP Photo/Jeffrey Collins)
Jeffrey Collins/AP
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AP
South Carolina House Ways and Means Chairman Bruce Bannister, R-Greenville, left, and Senate Finance Chairman Harvey Peeler, R-Gaffney, right, vote as the conference committee reached a budget deal, Friday, June 21, 2024, in Columbia, S.C. (AP Photo/Jeffrey Collins)

Statehouse reporters Gavin Jackson, Russ McKinney and Maayan Schechter are back at the Capitol reporting what you need to know when lawmakers are in Columbia. They'll post news, important schedules, photos/videos and behind-the-scenes interviews with policymakers.

Happy warm Tuesday.

And welcome to Week 11 of the South Carolina legislative session.

You're reading The State House Gavel, a daily reporter notebook by reporters Gavin Jackson, Russ McKinney and Maayan Schechter that previews and captures what goes on at the South Carolina Statehouse this year while lawmakers are in session.

The House returns to session this week, and, like the Senate, gavels in at noon.

There is *a lot* going on in the General Assembly this week — on and off the floor.

And what we are most looking forward to this week will take place not on the floor but on the field at Founders Park.

Yes, that's right sports fans. Tuesday is the annual legislative softball game: The House Amenders versus the Senate Filibusters.

We're no ESPN analysts over here, but we know that it's not been a good run in recent years for the upper chamber. However, we can report that the Senate believes 2025 may be the year for their Cinderella run to the trophy.

We spoke to Senate coach Sen. Sean Bennett, a Dorchester Republican elected in 2012. Rep. Robert Williams, an 18-year Darlington Democrat and coach of the House, did not respond by press time. Maybe he is feeling the pressure from a Senate with a revamped roster.

Bennett: "The exciting part is we have dramatically reduced our age deficiency, let's call it that. We've narrowed the age deficiency. What is yet to be determined is whether or not we've narrowed our athleticism deficiency. I'm hoping that we have done that. Our freshmen senators are very excited. Our pool of freshmen are on campus, they're excited, they've been putting in the work in the weight room. I feel good about it."

Bennett could not confirm or deny practices have occurred at an undisclosed location.

He said his pep talk to the freshmen will be simple: "Don't pull anything. Keep it close — until we can hand it over to the pages."

Don't forget: Tuesday is Election Day for voters in S.C. House District 113, a race to fill the North Charleston seat vacated by former Rep. Marvin Pendarvis. Democrat Courtney Waters, a former Charleston County school board member, is running unopposed.

Notebook highlights:

  • We're talking about taxes — income taxes to be more specific. Leaders in the Statehouse on Tuesday will drop proposed "reform" legislation.
  • It's Week 4 of the Senate's debate over tort reform, and the Senate Finance panel investigating the $1.8 billion accounting error is set to release its report and recommendations. The House also is back in action after taking a break after budget. A breakdown of what we're watching.
  • Roughly three months into the 2025 legislative session, Gov. Henry McMaster has signed his name to nine bills, now laws. A breakdown of what each does.
Russ McKinney, Maayan Schechter and Gavin Jackson
SCETV
Russ McKinney, Maayan Schechter and Gavin Jackson

We're talking about taxes!

It's tax Tuesday at the South Carolina Statehouse.

Before gaveling in, the governor, House and Senate leaders and yes, Americans for Tax Reform President Grover Norquist per a press release, plan to unveil an income tax "reform" proposal that is expected to further cut the income tax rate — an effort, they say, to level the playing field with neighboring states.

Recall: A few years ago, the Legislature passed a law to reduce the state's income tax rate from 7% to 6.5% as part of a phased-in approach to protect general fund revenues. House Speaker Murrell Smith, R-Sumter, told reporters this year that accelerating the reduction of the state's current 6.2% income tax rate is a top priority for the chamber. And Gov. Henry McMaster in his January executive budget asked lawmakers to spend the money to cut the rate down to a flat 6% within two years, with plans for additional cuts in the future.

Income tax 101: Though South Carolina's effective tax is lower than many other states, the marginal tax rate on paper is higher. Per the state Revenue and Fiscal Affair's Office, 44% of the state's returns have no liability, meaning they don't pay an income tax, and 10% of the returns pay about 63% of the total tax liability.

Look ahead: Tax cuts, even income tax rate cuts, can be a tricky business. Collectively, we've covered probably more than a decades worth of tax "reform" committees that have gone nowhere. Currently, 44% to 45% of the state's tax revenue comes from income taxes.

South Carolina House Speaker Murrell Smith, R-Sumter, left, Senate President Harvey Peeler, R-Gaffney, center, and House Ways and Means Committee Chairman Bruce Bannister, R-Greenville, right, discuss a meeting about the state budget after a meeting of the Agency Head Salary Commission on Thursday, June 8, 2023, in Columbia, S.C. (AP Photo/Jeffrey Collins)
Jeffrey Collins/AP
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AP
South Carolina House Speaker Murrell Smith, R-Sumter, left, Senate President Harvey Peeler, R-Gaffney, center, and House Ways and Means Committee Chairman Bruce Bannister, R-Greenville, right, discuss a meeting about the state budget after a meeting of the Agency Head Salary Commission on Thursday, June 8, 2023, in Columbia, S.C. (AP Photo/Jeffrey Collins)

What we're watching in Week 11

We're now past the midway mark on the legislative calendar.

And as we get closer to April (next week), it's worth pointing out that lawmakers this year got rid of the April crossover deadline, which means we don't get that rush between chambers to pass legislation before sine die on May 8.

It's also worth mentioning that this is the first year of a two-year session, which means any bill that fails to become law this year still has time to do so in 2026 — an election year for House members and statewide.

With that being said, this is in many ways crunch time for both bodies to get something passed this year.

So, here is what we're watching in Week 11.

Starting with the Senate:

  • Senate leaders want this to be *the* week that they wrap up tort reform, S. 244. The debate is now stretching into its fourth week after senators reached a compromise on the legislation. Still hanging out there, however, is what to do with joint and several liability, a core part of the bill that deals with how much responsibility is split among parties that cause harm to a victim. As a matter of the calendar, senators have other policy priorities they hope to wrap up before session ends in May. In addition to finishing tort reform, there are energy bills, and of course, the budget.
  • The Senate Finance Committee meets Tuesday afternoon, when Sen. Larry Grooms — the Berkeley Republican who has been running the Senate's inquiry into the $1.8 billion accounting error — will release the panel's final report and recommendations. And, at the same time, the Senate Judiciary Committee will hold a last vote on energy legislation before it hits the floor.
  • The Senate Education Committee meets Wednesday morning on five bills that deal with school meals, expulsion and private security, educator assistance and charter school enrollment.

Now the House:

  • Added to what the House does with its income tax plan, the chamber on Wednesday is expected to debate legislation that tackles diversity, equity and inclusion offices and initiatives on college campuses, state and quasi state agencies, local governments and school districts. The bill was heavily amended last week after affected sectors told lawmakers the financial impact would be huge.
  • The Medical, Military, Public and Municipal Affairs Committee — more commonly referred to as 3M — will at 9 a.m. Tuesday take up S. 2, the second effort to consolidate state health agencies.
  • The Ways and Means General Government Subcommittee meets Tuesday afternoon to discuss in part H. 3645 (filed by Rep. Beth Bernstein, D-Richland) to expand paid parental leave for eligible state employees from six weeks to 12 weeks for a child's birth and from two to four weeks for a co-parent after the birth or for fostering a child.

Editor's Note: This is not an exhaustive list of key meetings we're watching. You can find plenty more on the Statehouse website. Meetings may change/be canceled daily.  

Senate lawmakers debate the major tort reform bill S. 244 at the South Carolina Statehouse on March 18, 2025.
Gavin Jackson
Senate lawmakers debate the major tort reform bill S. 244 at the South Carolina Statehouse on March 18, 2025.

Bills that became law — so far

As of this post, Gov. Henry McMaster has signed nine bills into law.

Most are local bills, including two Clarendon County-based laws that deal with the county's aeronautics commission (S. 282) and the school board (H. 3792), and a law (H.3952) requiring that the Florence-Darlington Technical Education Commission file a report with Darlington's county council its operating expenses for tax purposes.

The governor has also signed:

  • H. 3523, called the organized retail crime bill filed by Rep. Jeff Johnson, R-Horry. The law adds penalties to anyone who commits the crime in a group of two or more.
  • H. 3438, a joint resolution by Rep. Tommy Pope, R-York, that gives legislative approval to the Catawba Indian Nation to expand its reservation.
  • S. 157, filed by Senate President Thomas Alexander, R-Oconee, that allows electric utility companies to include capital costs as storm recovery costs due to Hurricane Helene.
  • S. 253, a joint resolution filed by Senate budget Chairman Harvey Peeler, R-Cherokee, that directs the state offices of treasurer, comptroller general and auditor to put into place recommendations outlined in the audit firm AlixPartners report over the $1.8 billion accounting error.

You can keep track of the governor's bill signings here.

South Carolina Gov. Henry McMaster, center, gives his State of the State speech Wednesday, Jan. 29, 2025, in Columbia, S.C. (AP Photo/Jeffrey Collins)
Jeffrey Collins/AP
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AP
South Carolina Gov. Henry McMaster, center, gives his State of the State speech Wednesday, Jan. 29, 2025, in Columbia, S.C. (AP Photo/Jeffrey Collins)

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Springtime at the South Carolina Statehouse.
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Springtime at the South Carolina Statehouse.

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Maayan Schechter
Maayan Schechter (My-yahn Schek-ter) is a news reporter with South Carolina Public Radio and ETV. She worked at South Carolina newspapers for a decade, previously working as a reporter and then editor of The State’s S.C. State House and politics team, and as a reporter at the Aiken Standard and the Greenville News. She grew up in Atlanta, Georgia, and graduated from the University of North Carolina-Asheville in 2013.
See stories by Maayan Schechter
Gavin Jackson
Gavin Jackson graduated with a visual journalism degree from Kent State University in 2008 and has been in the news industry ever since. He has worked at newspapers in Ohio, Louisiana and most recently in South Carolina at the Florence Morning News and Charleston Post and Courier.
See stories by Gavin Jackson
Russ McKinney
Russ McKinney has 30 years of experience in radio news and public affairs. He is a former broadcast news reporter in Spartanburg, Columbia and Atlanta. He served as Press Secretary to former S.C. Governor Dick Riley for two terms, and for 20 years was the chief public affairs officer for the University of South Carolina.
See stories by Russ McKinney