Legislation that would significantly increase property tax relief for seniors and disabled residents is headed to the South Carolina House of Representatives after clearing the Senate. The bill proposes a substantial hike to the state’s homestead tax exemption, which currently allows qualifying homeowners to deduct $50,000 from the fair market value of their primary residence.
Under the new proposal, that exemption would climb to either $75,000 or $150,000, effectively lowering the taxable assessment of a home and reducing the annual tax burden for eligible participants.
Impact on Current Recipients
The expanded benefits would automatically apply to residents who already qualify for the program. This includes homeowners who are 65 years of age or older, as well as those who are legally blind or classified as totally and permanently disabled. These residents would be grandfathered into the new system, potentially seeing their exempt home value triple under the highest tier of the plan.
Stricter Residency Requirements for New Applicants
While the bill offers more generous tax breaks, it introduces much tougher eligibility standards for those applying in the future. Currently, homeowners can qualify for the exemption after just one year of state residency. The new legislation would require a significantly longer commitment to the Palmetto State:
-
Five-Year Residency: Required to qualify for the $75,000 exemption.
-
Ten-Year Residency: Required to qualify for the full $150,000 exemption.
Legislative Outlook
Proponents of the bill argue that the changes reward long-term residents and provide much-needed relief to retirees living on fixed incomes amidst rising property values. However, the five- and ten-year residency mandates represent a shift in state policy, aimed at ensuring tax benefits are prioritized for established South Carolinians rather than recent arrivals.
The House is expected to begin subcommittee hearings on the measure in the coming weeks. If signed into law, the changes would mark the most significant overhaul of the homestead exemption in decades.
Sign up for our Sunday Spectator. Delivered to your inbox every Sunday, with all the news from the week.
