Homestead Exemption (Feb. 20 Friday Report Summary)
S. 768, as introduced, would increase the homestead exemption from $50,000 to $100,000 and lower the age requirement to 60. The Finance Committee amended the bill to add a five-year South Carolina residency requirement beginning in property tax year 2026-27. The amendment also keeps the age requirement at 65 but increases the exemption for those who currently reside in the state to the first $150,000. Lastly, the amendment gives counties authority to further increase the exemption through ordinance, but any taxes not collected from the extra increase would not be eligible for reimbursement from the Trust Fund for Tax Relief. The amended bill represents an SCAC Policy Position.
Status: The Senate continued debating the bill on the floor, ultimately adopting the following amendments:
- Requires a property tax notice or assessment to include an itemized list of any homestead exemption received by the taxpayer and a notation of State Legislature Aiding in Saving Homes, the amount the individual's property tax bill was reduced, and the amount, if any, the state reimbursed the local taxing authorities on behalf of the individual;
- Changes the exemption to $75,000 for those who have lived in South Carolina for the past five years and $150,000 for those who have lived in South Carolina for the past 10 years;
- Further amends the residency requirement from the proceeding five- or 10-year requirement to a requirement that the resident has lived in South Carolina for five or 10 years “at any time” before the application; and
- Further amends the residency language for those seeking the exemption to require the taxpayer to have filed an income tax return documenting that they have lived in the state for five years.
The Senate passed the bill, as amended, and sent to the House.