Bill > H4475

This bill amends South Carolina property tax exemption laws for nonprofit housing corporations by modifying how tax exemptions are calculated for properties providing low-income housing. The bill specifies that the property tax exemption will now be proportionate to the nonprofit corporation's ownership percentage in the property, with two key exceptions: if the nonprofit owns more than 50% of the property or if all units are devoted to low-income housing, the exemption can be 100%. The bill introduces detailed certification requirements, mandating that nonprofit housing corporations apply to the Department of Revenue and provide annual documentation about their ownership percentage and compliance with specific IRS guidelines (Revenue Procedure 96-32). Additionally, the bill requires the department to notify local county and municipal authorities about approved exemptions. The changes will apply to property tax years beginning after 2026 and do not affect projects that had already submitted or received exemption applications prior to the bill's approval. The bill aims to provide more precise and transparent guidelines for property tax exemptions for nonprofit housing corporations serving low-income residents.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4475&session=126&summary=B