A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "TENANT PROTECTION ACT OF 2025" BY ADDING SECTION 12-37-3137 SO AS TO PROVIDE A PROPERTY TAX EXEMPTION LIMITING THE INCREASE IN PROPERTY TAX VALUE FOLLOWING AN ASSESSABLE TRANSFER OF INTEREST WHEN THE PROPERTY WILL BE SUBJECT TO A CERTAIN SIX PERCENT ASSESSMENT RATIO.
Summary
H3951, titled the “Tenant Protection Act of 2025,” amends South Carolina property tax law to create a new exemption for certain real property that has undergone an assessable transfer of interest after 2024. The exemption is designed to limit the increase in taxable value for property that is subject to the six percent assessment ratio under Section 12-43-220(c) or (e), and it caps the exemption value so that it does not exceed 110 percent of the property tax value. In practical terms, the bill appears intended to soften the property tax impact of reassessment after a transfer by limiting how much the taxable value can rise when the ATI fair market value first applies.
The bill allows a taxpayer to elect this new exemption instead of the existing exemption under Section 12-37-3135. To receive it, the owner or the owner’s agent must notify the county assessor of the election and confirm that the property will be subject to the six percent assessment ratio by January 31 of the first tax year for which the exemption is claimed. After that initial notice, no further annual notification is required so long as the property remains under the qualifying assessment ratio. The act takes effect upon gubernatorial approval and applies first to property tax years beginning after 2024.
The bill’s impact is limited to the property tax code, specifically Article 25 of Chapter 37, Title 12 of the South Carolina Code, and it creates a new optional exemption framework for qualifying properties. It would affect property owners whose parcels are subject to the six percent assessment ratio and who experience an assessable transfer of interest, as well as county assessors who must administer the election and exemption. The bill also cross-references existing definitions in Section 12-37-3135, indicating that it builds on current ATI-related valuation rules rather than replacing them entirely.
There is little recorded committee or floor discussion available for this bill, and no voting history is provided in the materials. Based on the text alone, the measure appears to be framed as a taxpayer relief or property tax stabilization bill, despite its title referencing tenants. The general sentiment cannot be measured from debate records, but the structure of the bill suggests a policy goal of reducing tax spikes after property transfers for qualifying owners.
The main point of potential contention is the relationship between the bill’s title and its actual effect: it addresses property tax valuation and exemptions for owners, not direct tenant protections. Another possible issue is that the exemption is limited to properties under the six percent assessment ratio and requires an affirmative election and notice to the county assessor, which may narrow its practical reach. Any debate would likely center on whether the bill appropriately targets tax relief for qualifying property owners and whether the administrative requirements are sufficiently clear.
Impact
This bill would add Section 12-37-3137 to the South Carolina Code to create a new property tax exemption for certain real property that undergoes an assessable transfer of interest after 2024 and is subject to the six percent assessment ratio. It would limit the increase in taxable value by capping the exemption value at no more than 110 percent of the property tax value, and it would operate as an alternative to the existing exemption in Section 12-37-3135. County assessors would need to process taxpayer elections and apply the exemption beginning with property tax years after 2024.
Sentiment
No committee transcripts or votes are available, so there is no documented public debate to gauge support or opposition. From the bill text, the measure appears generally pro-taxpayer and aimed at limiting post-transfer property tax increases, which suggests a favorable policy intent for affected property owners. However, the title’s emphasis on “tenant protection” may create some ambiguity about the bill’s purpose and could affect how it is received.
Contention
The most notable contention is that the bill is titled the “Tenant Protection Act of 2025,” but its operative provisions deal with property tax exemptions for owners after an assessable transfer of interest, not direct tenant rights or landlord-tenant regulation. That mismatch could draw criticism from those who view the title as misleading. A second possible point of debate is the bill’s narrow applicability: it only covers properties under the six percent assessment ratio and requires timely notice to the county assessor, which may limit access and create administrative burdens for taxpayers and local officials.
Similar To
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "TENANT PROTECTION ACT OF 2026" BY ADDING SECTION 12-37-3137 SO AS TO PROVIDE A PROPERTY TAX EXEMPTION LIMITING THE INCREASE IN PROPERTY TAX VALUE FOLLOWING AN ASSESSABLE TRANSFER OF INTEREST.