Senate subcommittee pauses bill to require annual verification for low‑income housing tax exemption

Senate Finance Committee property tax subcommittee members heard detailed testimony on S.125, a bill to amend property‑tax exemptions for nonprofit housing and to require annual certifications to the South Carolina Department of Revenue (DOR). The panel agreed to carry the bill over for further work.

The bill would amend statutory language (cited in testimony as “12 37 2 20”) to change how the exemption is calculated when a nonprofit holds a direct or indirect ownership interest. Under the draft, a nonprofit that owns 50% or more of a qualifying property would qualify for a full exemption; smaller ownership percentages would produce a proportional credit. The bill would also require an initial certification of ownership percentage and rent roll by the first penalty date (described in testimony as January 15) and an annual certification to DOR by October thereafter.

Why it matters: supporters and opponents framed S.125 as an accountability measure that could preserve the exemption’s…