Participate in the Greenville County Comprehensive Planning Process

Participate in the Greenville County Comprehensive Planning Process

Greenville County is updating its Comprehensive Land Use Plan for the next decade.

During the month of February, there will be nine community meetings, hundreds of hours at interactive stations and a mapping table, and thousands of citizen opinions provided in surveys and face-to-face discussions for the effort dubbed “Plan Greenville County.” In the words of the County Council Chairman Butch Kirven, “It’s a big deal!”

As Home Builders and real estate professionals, it is important that your voice is heard.  Drop-in style community meetings begin February 4. Officials say that citizen-driven priorities, preferences, and concerns will guide the creation of the 10-year plan.

Potential topics of discussion include growth, traffic, public transportation, housing, economic development, and jobs.

The Meeting Schedule

  • Monday, Feb. 4, 5-8 p.m. at Travelers Rest High School Commons/Cafeteria
  • Thursday, Feb. 7, 5-8 p.m. at Eastside High School Media Center
  • Monday, Feb. 11, 5-8 p.m. at Bells Crossing Elementary School Cafeteria
  • Tuesday, Feb. 12, 5-8 p.m. at Woodmont High School Commons/Cafeteria
  • Thursday, Feb. 14, 5-8 p.m. at Berea High School Commons/Cafeteria
  • Thursday, Feb. 21, 11 a.m.-7 p.m. at County Square, Suite 400
  • Monday, Feb. 25, 5-8 p.m. at Blue Ridge High School Commons/Cafeteria
  • Tuesday, Feb. 26, 5-8 p.m. at Ralph Chandler Middle School Cafeteria
  • Thursday, Feb. 28, 5-8 p.m. at Mount Pleasant Community Center

Visit the website by clicking here.

Tax Reform Update

Tax Reform Update

Your Association is Working for You to Save Your Business Money

The Tax Reform Act of 2017 made meaningful change to the Federal tax code that has helped stimulate our country’s economy.  It also created some confusion and unknowns.  But your Home Builders Association and other associations have been working hard with the IRS to get you some answers and create the best outcome for your businesses.

IRS to Waive 2018 Withholding Penalties for Most Filers 

The Internal Revenue Service has announced that it is waiving the tax penalty for many home builders and other small businesses that pay estimated quarterly taxes but whose 2018 federal income tax withholding and/or estimated tax payments fell short of their total tax liability for the year.

Treasury Issues Final Rule on Pass Through Entities
The Treasury Department has issued final regulations for the 20% pass through entity deduction under the Tax Cuts and Jobs Act of 2017. The final regulations concern the deduction for qualified business income under Section 199A of the Internal Revenue Code. This includes individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses.

(the following content sourced from the National Association of REALTORS)
IRS Provides Clear Test on How 20% Deduction Applies to Rental Income, Exchanges

The IRS has issued final rules on the 20 percent business income deduction that was part of the 2017 Tax Reform Act.  The new rule confirms that the deduction applies to your business income, as a real estate agent or broker, if you operate as a sole proprietor or owner of a partnership, S corporation, or limited liability company. It applies even if your income exceeds a threshold set in the law of $157,500 for single filers and $315,000 for joint filers. In addition, the new rule provides guidance on two other provisions: 1) whether any real estate rental income is eligible for the deduction, and 2) how the deduction applies to properties exchanged under Section 1031.

Eligibility of rental income 

Rental property income also can qualify for the new deduction, as long as you can show that your rental operation is part of a trade or business. The IRS has released proposed guidelines that include a bright-line test for showing that rental income rises to the level of a trade or business. Under that safe harbor, you can claim the deduction if your rental activities-which include maintaining and repairing property, collecting rent, paying expenses, and conducting other typical landlord activities-total at least 250 hours a year. If your activity totals less than that, you can still try to take the deduction, but you will have to be prepared to show the IRS that your activity is part of a trade or business.

Eligibility of 1031 like-kind exchanges

Under earlier proposed regulations, if your income was above threshold levels set in the tax law–$157,500 for single filers, $315,000, for joint filers–and you had exchanged one property for another to defer taxes under Sec. 1031, the amount of the new deduction might be reduced because of the swap. NAR and other trade groups reached out to the IRS to change this treatment, and the IRS has made the change. Under the final rules, you can use the unadjusted basis of the depreciable portion of the property to claim at least a partial deduction.

 

Greenville County Announces New Process for Final Development Plans

Greenville County Announces New Process for Final Development Plans

At their meeting in November, Greenville County’s Planning Commission approved a new procedure for review and approval of Final Development Plans.

Beginning immediately, Final Development Plans will be reviewed and approved by Greenville County staff.  The review is for consistency with the Preliminary Development Plan.  If the Final Development Plan differs significantly from the Preliminary Development Plan, the project could be required to be resubmitted to the Planning Commission.  In addition, if the developer disagrees with an action taken by county staff, the developer may appeal the decision to the Planning Commission.

Planning staff will provide the Planning Commission with a report each month of Final Development Plans that have been reviewed and approved.

This change will save about 45 days in the development approval process and is the result of your HBA continuing to work with Greenville county to speed up the development review process.

Greenville County Announces New Process for Final Development Plans

Greenville County Financial Security for Water and Sewer to Remain Unchanged–For Now

Late last year MetroConnects threw Greenville County government, and developers and home builders, a curve ball when they announced that they would no longer accept a financial security guarantee deposited by the developer with Greenville County.  This announcement had the effect of adding several months to the process of finishing a development and making it ready for builders to buy lots and begin building homes.

After considerable negotiation and lobbying, that included your Home Builders Association, Greenville County announced Friday that the current Financial Security Process will remain unchanged–for now.  This is good news.  Read the county’s announcement below:

Over the past few months there has been some discussion about modifying the process for acceptance of the line item cost for sewer and water completion.

Until further notice, the process will remain the same to include the line item for these costs.   All parties have agreed to discuss this further with all the sub-sewer districts and develop one policy that applies to the entire county.  Once a final decision is reached ample notices will be given if the current policy is changed.

The current policy is still subject to review by the utility provider and approval by the Assistant County Administrator for Community Planning, Development and Public Works or her designated representative.  If approved, the cost estimate form for financial security shall include the full cost of the installation of the water and sewer lines.  Additionally, the financial security amount shall be based on 125% of the cost estimate approved by the County at the time financial security is accepted.

Thank you

Subdivison Administration Team

Land Development Division

Subdivision Administration

New law on homeowners associations is in effect

New law on homeowners associations is in effect

A new law regulating homeowners associations became effective last May when Governor Henry McMaster signed it.

A key provision of that law takes effect January 10.  It requires HOA’s to record with the county Register of Deeds office all bylaws, declarations, or master deeds, or any amendments to them.

Here is a quick run down of what else the law does:

  • Rules and regulations are enforceable as soon as they are passed but must be available to the association members through dissemination or posting in a manner defined in the bill (conspicuous place or online). In order to keep enforcing any new rules, they must be recorded with the county Register of Deeds on or before January 10 of the following year.
  • If the HOA is not incorporated under S.C. Nonprofit Corporation Act, the HOA must provide 2-days notice of a proposed action to increase the budget.
  • The Magistrates Court now has jurisdiction over HOA monetary disputes.
  • Requires the Department of Consumer Affairs to collect certain information from citizens who call about HOAs and to furnish the General Assembly a report of that information annually. Consumer Affairs has no other authority over HOAs.
  • Requires the owner who is selling property to disclose if it is a part of an HOA.

If members have any questions about this legislation and how it might affect an HOA that you manage, your question can be submitted to the Gallivan White & Boyd Legal Hotline.

South Carolina personal income grew 4.4% (annualized) in the third quarter

South Carolina personal income grew 4.4% (annualized) in the third quarter

State personal income increased 4.0 percent at an annual rate in the third quarter of 2018, an acceleration from the 3.4 percent increase in the second quarter, according to estimates released today by the Bureau of Economic Analysis (table 1). Personal income increased in all states and the District of Columbia. The percent change in personal income across all states ranged from 6.2 percent in Nevada and Washington to 2.1 percent in Missouri.

Increases in earnings and property income (dividends, interest and rent) contributed to personal income growth in all states, while increases in transfer receipts contributed to personal income growth in all states, but New York (table 2).

Earnings. Earnings increased 4.0 percent in the third quarter of 2018, after increasing 3.0 percent in the second quarter and was the leading contributor to personal income growth in most states, including the six fastest growing states—Nevada, Washington, Arizona, Colorado, New Hampshire, and Oregon. Earnings increased in 20 of the 24 industries for which BEA prepares quarterly estimates (table 4).

  • Construction was the leading contributor to the earnings increase in Nevada, Arizona, New Hampshire, and Oregon (table 3).
  • Information was the leading contributor to the earnings increase in Washington.
  • Professional, scientific, and technical services was the leading contributor to the earnings increase in Colorado.

For the nation, professional, scientific, and technical services; state and local government; and healthcare and social assistance were the industries contributing most to overall growth in personal income (chart 1).

Property income. Property Income increased 4.0 percent for the nation in the third quarter of 2018, after increasing 3.9 percent in the second quarter. Growth rates ranged from 5.2 percent in Washington to 2.6 percent in Oklahoma.

Transfer receipts. Transfer receipts increased 4.0 percent for the nation in the third quarter of 2018, after increasing 4.4 percent in the second quarter. Growth rates ranged from 10.9 percent in Colorado to -1.6 percent in New York.