Governor Haley signed into law on May 25 the Multiple Lot Discount Bill, the signature legislative issue of the Home Builders Association of South Carolina.
The legislation gives a temporary three-year extension (2012-14 tax years) on the multi-lot tax abatement for builders and developers. In addition, it extends any remaining time left on the original five years to qualified residential developers. For builders who had the one-year builder discount in 2009, 2010, or 2011, they will get an additional three years. No refunds will be allowed. In addition, during the three year “timeout” period, qualified builders and developers can sell lots to other builders or developers and the discount will transfer with the lot. In addition, the bill makes permanent changes in the law to end annual recertification of the discount, and provides that subdivisions platted after May 1 of each year may still get the discount in that year by paying a very low late application fee ($100). The bill also terminates the old section 224 lot discount program, and makes several technical changes to ensure uniformity in the tax code.