The "Accessory Dwelling Unit Affordable Housing Incentive Act" aims to amend South Carolina's property tax laws by providing a property tax exemption for certain accessory dwelling units (ADUs). The bill introduces a new provision in Section 12-37-220, which defines an ADU as a secondary housing unit on the same lot as a primary residence. To qualify for the exemption, homeowners must earn less than 250% of their county's area median income (AMI), rent the ADU to individuals earning 80% or less of the AMI, comply with local zoning regulations, maintain the ADU as affordable housing for at least ten years, and accept Section 8 payments as part of the rent.

Additionally, the bill outlines compliance requirements, including the need for homeowners to provide annual proof of compliance, such as lease agreements and tenant income documentation. If a homeowner sells the property within ten years of renting the ADU, the tax exemption can be transferred to the new owner, provided they honor the existing lease. However, if the homeowner is found out of compliance, the property will be reassessed to include the ADU's value, and taxes will be calculated retroactively. The act will take effect upon the Governor's approval and will apply to property tax years beginning after 2024.

Statutes affected:
12/05/2024: 12-37-220
02/05/2025: 12-37-220
Latest Version: 12-37-220