South Carolina Manufacturers May Be Eligible for Property Tax Savings

Jack Schmoll, CPA

Many South Carolina manufacturers have until July 1, 2010 to take advantage of significant property tax savings. The potential savings are the result of the state amending the assessment ratio for certain real property from 10.5 percent to 6 percent.

In the past, the 10.5 percent property tax ratio applied to warehouse and distribution facilities that were on the same site as manufacturing facilities. However, if the warehouse and wholesale distribution
facilities were located at separate locations, the warehouse and wholesale distribution facilities qualified for a 6 percent ratio.

The ratio change results from Senate Bill 1171, Section 2.J (Act No. 313), which was passed in 2008 and effective for the 2009 reassessment and forward. It allows warehouse and wholesale distribution facilities on the same site as the manufacturing facility to qualify for the 6 percent ratio so long as the facilities meet specific requirements. This amendment applies to property owned or leased by a manufacturer used exclusively for warehousing and wholesale distribution regardless of location.