Legal loophole meant to boost affordable housing in SC has some getting million-dollar tax breaks
A loophole in South Carolina's tax code is allowing for-profit corporations to receive million-dollar tax exemptions, causing budget shortfalls for municipalities. The exemption was intended to promote affordable housing but is being exploited by private equity firms.
South Carolina municipalities are facing unexpected budget shortfalls due to a tax code loophole. The loophole allows property owners to forego property taxes if a nonprofit entity is involved in the ownership. For-profit corporations, including private equity firms, are exploiting this exemption. The Preserve at Port Royal, an upscale apartment complex, received a $1.3 million tax exemption. The town of Port Royal is losing around $350,000 in tax revenue, about 6% of its total property tax revenue. The exemption was intended to promote workforce housing but is being used by corporations worth billions of dollars.
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