The bill H. 4475 aims to amend Section 12-37-220 of the South Carolina Code of Laws, which pertains to property tax exemptions for nonprofit housing corporations. The proposed changes specify that the property tax exemption for these corporations will only apply to the percentage of property that corresponds to the corporation's ownership interest. Additionally, the bill introduces certain certification and notice requirements for claiming the exemption. Specifically, it mandates that nonprofit housing 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 are designated for low-income residents, the exemption may be granted at a rate of one hundred percent. However, this is contingent upon specific conditions related to the property's location and the income limits of the residents. The act will take effect upon the Governor's approval and will apply to property tax years beginning after 2026, while also requiring existing exempt projects to submit annual certifications to maintain their exemption status.

Statutes affected:
05/01/2025: 12-37-220
Latest Version: 12-37-220