Bill > S0439

This bill amends South Carolina's property tax code to modify the existing tax exemption for manufacturing property. Specifically, the bill increases the maximum annual reimbursement cap for manufacturing property tax exemptions from $170 million to $300 million. The exemption allows manufacturers to be taxed on only 57.1429% of their property's value, rather than the full assessed value, which helps reduce their tax burden. If projected reimbursements would exceed the new cap, the exemption amount will be proportionally reduced. The exemption does not apply to public utilities regulated by the Public Service Commission, and any refunds to such utilities must be passed through to customers as rate reductions. Importantly, while the property is exempted from standard property taxes, it is still considered taxable for purposes of calculating bonded indebtedness. The changes will take effect upon the Governor's approval and will first apply to property tax years beginning after 2024, providing manufacturers with a more generous tax exemption framework that aims to support industrial development in the state.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=0439&session=126&summary=B