The bill S. 125 amends Section 12-37-220 of the South Carolina Code of Laws, which pertains to property tax exemptions for nonprofit housing corporations. The amendment specifies that the property tax exemption for these corporations will only apply to the percentage of property that corresponds to the corporation's ownership interest in that property. Additionally, the bill introduces certification and notice requirements for nonprofit housing corporations seeking this exemption. Specifically, it mandates that these corporations must apply to the department, certify their ownership percentage, and provide documentation to demonstrate compliance with the relevant IRS safe harbor provisions.

Furthermore, the bill outlines that if a nonprofit housing corporation holds more than a fifty percent ownership interest in qualifying property, or if all units in the property are designated for low-income residents, the exemption will be granted at a rate of one hundred percent. The bill also establishes annual certification requirements for continued eligibility and sets forth penalties for noncompliance. The act will take effect upon the Governor's approval and will apply to property tax years beginning after 2025, while exempt projects approved prior to this act will still need to submit the required annual certifications.

Statutes affected:
12/11/2024: 12-37-220
02/19/2025: 12-37-220
02/26/2025: 12-37-220
Latest Version: 12-37-220