A new state law will lessen the tax requirements for redeveloped land by as much as 40% after 2020, according to Wilson Kibler, a commercial real estate company headquartered in Columbia since 1987.
Since 1976, state law has required landowners pay 5 years of ‘Roll Back’ taxes at the regular tax rate upon repurposing agricultural land for development, thus removing any agricultural exemption that may have been in place. The new law, which goes into effect Jan. 1, requires payment just three years of ‘Roll Back’ taxes, instead of the original five, which will result in a significant savings for some landowners and developers.
According to Wilson Kibler industrial and land specialist George McCutchen, CCIM, SIOR, this agricultural exemption is available for any property with five or more acres that features crops, trees, hay, or other fallow land, regardless of its zoning. According to McCutchen, the Agricultural exemption may result in a tax savings prior to development of nearly 99% of what would be required if the exemption were not in place. He says, “The five-year tax ‘Roll Back’ has prevented some landowners from further developing their property, so this is exciting for our state. It will also result in a larger tax base, which is really a win-win situation for all involved.”
Wilson Kibler is a full-service commercial real estate firm with offices in Columbia, Charleston, and Greenville. Wilson Kibler provides a broad range of commercial real estate services throughout the state, including tenant and buyer representation, leasing, acquisition and disposition, property management, development, and consultation. Each of these services is staffed by highly regarded professionals focused on providing value for clients throughout all phases of an assignment. Wilson Kibler is an Accredited Management Organization and its professionals hold prestigious designations including CCIM, CPM, LEED GA, and SIOR. For more information visit www.wilsonkibler.com.
SCBIZtv is part of the SC Biz News family, serving 100,000 high-level business execs throughout South Carolina. Click for more from SCBIZtv.