South Carolina Lawmakers Must Fix Flawed Property Tax Break Rules

September 20, 2026 - 00:14

South Carolina lawmakers must revisit a 2020 loophole that allowed private apartment owners to remove entire complexes from the tax rolls in return for little to no public benefit.

The provision was originally intended to encourage affordable housing development. Instead, it opened the door for investors to claim steep tax breaks on market rate units that were never meant to serve low income residents. In several counties, apartment complexes received full exemptions while rents continued to climb. Local governments lost millions in revenue that would have funded schools, roads, and emergency services.

The problem is not the idea of supporting affordable housing. The problem is a law written so loosely that it invites abuse. Requirements for income verification, rent caps, and public reporting are either missing or too weak to matter. Property owners can qualify without proving that a single unit stays within reach of a working family.

A rewrite should close these gaps. Lawmakers need clear eligibility standards, mandatory audits, and penalties for false claims. Tax breaks should reward developers who actually build and maintain affordable units, not those who simply find a clever way to pay less.

Every dollar exempted shifts the burden to other taxpayers. That is a tradeoff worth making when the public gets something real in return. Right now, too many deals offer the public nothing but a promise. South Carolina can do better, and it should start in the next legislative session.