South Carolina Passes Rollback Tax Changes for Land Development
In South Carolina, when land is reclassified typically from agricultural land to other designations for residential and commercial development, there has been a rollback tax going back 5 years.
As ag land, the taxes are significantly lower. But if you sold your land to a developer, they would have to pay taxes going back 5 years as though that land had been fully valued lets say as commercial property. That’s a big number especially on large parcels of land. The new law, H.3596 Rollback Tax Reform, reduces the rollback tax from 5 years to 3 years effective January 1, 2021. I would indeed expect some transactions might get pushed to close after the 1st of the year.
South Carolina Association of Realtors has an excellent article discussing the impact of the rollback tax reform for 2021.
About The Author
John Murphy
Husband of 36 years to my college sweetheart, Janet Murphy (@janetmurphydesign on Instagram). Together we have 6 wonderful children from ages 18-34 and 6 grandchildren. My main work is helping commercial building owners and real estate investors save money on their income taxes by doing cost segregation. I work all over the U.S. but have a lot of clients here in SC and in the southeast in particular. The firm I represent is CSSI, LLC. I love the work! I’ve also been a licensed REALTOR since 2003 and broker since 2007 but my work is limited to just a few clients each year. We relocated to Greenville, SC for the lifestyle, lower cost of living, amazing amenities in the area and the growth opportunity for business and real estate. We absolutely love it here!
All opinions are expressly my own and do not represent either CSSI, LLC or eXp Realty LLC or any other company, organization or group that I might be affiliated with.