WeVote
Log In

Bill

Bill

H 5011

Tenant Protection Act of 2026

2025-2026 Regular Session Introduced by Gary Brewer and 4 co-sponsors

This act allows a property tax exemption for assessable transfers of interest that caps the exemption so total value cannot exceed 110% of the ATI-based tax value.

Member(s) request name added as sponsor: M.M.Smith
0
WeVote Research Nonpartisan
Bill Summary · H 5011

Summary of Bill: H 5011 (South Carolina) — Tenant Protection Act of 2026

Overview

  • Purpose: Enacts the “Tenant Protection Act of 2026” to provide a property tax exemption related to assessable transfers of interest (ATI) in real property. The exemption aims to limit the increase in property tax value following an ATI, offering protection for property owners from sharp tax jumps due to ownership transfers.
  • Effective date: Takes effect upon the Governor’s approval and first applies to property tax years beginning after 2025.
  • Introduced: January 22, 2026. Sponsored by M.M. Smith and co-sponsored by Gil Gatch, Gary Brewer, Mark Smith, Bill Herbkerson, and Robby Robbins.

Key Provisions

New Tax Exemption (12-37-3137)

  1. Who it applies to: Parcels of real property (including improvements) currently subject to property tax that undergo an assessable transfer of interest (ATI) after 2025.
  2. Exemption scope: The exemption amount is set so that the exemption value does not exceed 110% of the property tax value. In other words, the exemption can cover up to 10% above the calculated property tax value.
  3. Basis for calculation: For purposes of this exemption, “exemption value,” “property tax value,” and “ATI fair market value” have the same meaning as defined in Section 12-37-3135. The exemption value is used to calculate the property tax value at the time the ATI fair market value first applies.
  4. Election of exemption: A taxpayer may choose to claim this exemption instead of the exemption under Section 12-37-3135.
  5. Notification requirement: To claim the exemption, the owner (or owner’s agent) must notify the county assessor of the election before January 31 of the tax year in which eligibility is first claimed. After this initial notification, no further notifications are required from the current owner.

Administration and Timing

  • Election window: The exemption must be elected by January 31 of the tax year in which eligibility is first claimed.
  • One-time notification: Requires only the initial notification by the current owner; no ongoing annual notification is specified beyond the initial election.
  • First applicability: Applies to ATI events occurring after 2025, with the exemption calculated based on the ATI fair market value at its first application.

Who is Affected

  • Property owners of real properties (including improvements) subject to property taxes that experience an ATI after 2025.
  • County assessors who administer property tax exemptions and must process the notification and determine exemption eligibility and value (per the definitions in 12-37-3135).

Practical Impact

  • Tax stability following ATI: The exemption provides a ceiling so that the property tax value increase due to ATI cannot exceed 110% of the ATI-based property tax value, potentially mitigating large tax increases triggered by ownership transfers.
  • Election choice: Owners have an option to select this exemption instead of the existing exemption under Section 12-37-3135, offering flexibility in tax relief strategies.
  • Administrative burden: Requires initial notification by January 31 to activate the exemption; subsequent years appear not to require re-notification under this section.

Note

  • The bill does not specify the amount of tax savings in dollars, but sets a percentage cap (exemption value not to exceed 110% of the property tax value) to limit increases.
  • The exact interaction with existing Section 12-37-3135 exemptions depends on the owner’s election and the ATI timing.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.