G. Rehabilitated Textile Mill Site Credit

• Library: Practical Guide to Commercial Real Estate in South Carolina (SCBar) (2012 Ed.)

G. Rehabilitated Textile Mill Site Credit

A credit which may be applied against real property taxes, income taxes, corporate license fees, or insurance premium taxes is available to South Carolina taxpayers who rehabilitate a textile mill site. Rehabilitation expenses include the demolition of existing buildings, environmental remediation, site improvements and the cost of constructing new buildings and other improvements on the textile mill site. The credit at the election of the taxpayer is available as a credit against real property taxes, income taxes, corporate license fees or insurance premium taxes. Additionally, if an election is made to apply the credit against income tax and if the taxpayer is a partnership or limited liability company taxes as a partnership, then the credit may be earned in phases and specially allocated on an annual basis to one or more members or partners who are a member or partner at any time during the year in which the credit is allocated. This provision allows developers to in effect sell the credit to taxpayers who are otherwise not involved in the development over various phases.¹² The credit is subject to adjustment equal to 25% of the actual rehabilitation expense, and must be taken in equal installments over a five (5) year period beginning in the year in which the applicable phase or portion of the textile mill site is placed in service (ready for its intended use). Unused credits may be carried forward for the succeeding five (5) years.

Once an election is made to apply the credit against real property tax or income tax/license fee, notice of Intent to Rehabilitate is given to County or municipality if the credit is to be applied to real property or the Department of Revenue if the credit is to be applied to income tax/license fee. County/municipal approval by ordinance is required if the election is made to use the credit to reduce real property taxes. Finally, a taxpayer may apply to the municipality or County in which the textile mill site is located to establish by ordinance: (i) that the textile mill site was a textile mill; (ii) that the textile mill has been abandoned; and (iii) the geographic area of the textile mill. The ordinance may be conclusively relied upon by the taxpayer in determining the credit allowed.¹³

Property Tax Forms:

1. Application for Exemption from Property Tax (S.C. Dept. of Revenue Form PT-401)

2. Property Tax Return (S.C. Dept. of Revenue Form PT-300)

a. Schedule A: Manufacturing or Mining (S.C. Dept. of Revenue Form PT-300A)
b. Schedule B: Non-Contiguous Manufacturing (S.C. Dept. of Revenue Form PT-300B)
c. Schedule C: Research and Development (S.C. Dept. of Revenue Form PT-300C)
d. Schedule D: Corporate Headquarters Distribution Facility (S.C. Dept. of Revenue Form PT-300D)
e. Schedule S: Manufacturing Fee in Lieu of Tax (S.C. Dept. of Revenue Form PT-300S)

3. Extension of Five-Year Exemption to Unrelated Purchaser (S.C. Dept. of Revenue Form PT-444)

4. Fee in Lieu of Property Tax Initial Report Form (S.C. Dept. of Revenue Form PT-443)

5. Homeowners' Association Application for Special Valuation (Charleston County Form)

6. Application for Property Tax Exemption for Newly Constructed and Unoccupied/Unsold Detached Single Family Homes (Charleston County Form)

7. Application for Multiple Lot Discount (Charleston County Form)

8. Application for Agricultural Use Valuation (Charleston County Form)

9. Application for Legal Residence Assessment (Charleston County Form)

1350

STATE OF SOUTH CAROLINA DEPARTMENT OF REVENUE APPLICATION FOR EXEMPTION

PT-401

(Rev. 6/30/09)

7016

Provisions for Filing for Exemptions, as Provided by Sections 12-4-710, 12-4-720, 12-4-730, 12-4-740, 12-4-750, and 12-60-1730.

Refer to instruction sheet (PT401-I) before attempting to complete application.

1. Owner and Mailing Address (please print) SS/FEI Number: __________

Last First Middle

Mail to:

SC Department of Revenue

Property Division

Columbia, SC 29214-0303

___ 1a. Year ___

SID Number

(Office Use Only)

Telephone Number: __________

2. Date Real Property Acquired:. __________

3. S.C. Code Section 12-37-220 A ___ or B. ___

For real property, attach copy of deed/title. If applying for Mobile Home, attach copy of title or bill of sale.

4. County in Which the Property is Located or Registered: __________

5. Location of Property

(If different from mailing address)

6. Tax Map Number: __________

Number of Acres: __________

Mobile Home Permit Number: __________

Mobile Home Tax Map Number: __________

7. Land and Building 1 [ ]

Land 2 [ ] (CHECK ALL THAT APPLY)

Building 3 [ ]

Mobile Home 4 [ ]

St. or Hwy:

City or Area:

Tax District:

8. Deed Book Number __________

Page Number __________

9. Vehicle Information: Attach copy of vehicle(s) Registration Card(s), Bill of Sale(s), or Title(s).

VEHICLE IDENTIFICATION NUMBER TYPE MAKE YEAR REGISTERED OWNER COUNTY REGISTERED IN

FURNITURE AND FIXTURES TYPE

10. Furniture and Fixtures: For organizations applying for furniture and fixtures, attach a separate sheet. Identify item, date of acquisition, cost at acquisition, accumulated depreciation and net value. Example: Furniture and Fixtures; Type 20.

NOTE: Separate applications must be filed for each parcel of real estate. Multiple listing of personal property is permitted, if registered in the same county and to the same owner(s).

If the initial application is accepted and the exemption is granted, you are not required to file a subsequent application, unless there is a change in the property reported on the initial application or unless requesting an exemption for property not included on prior applications.

Applications must be filled out completely and signed to be accepted by this office. All incomplete applications will be returned for completion, causing a delay in our consideration of your request for exemption.

Upon completing the Application for Exemption, please refer to the instruction sheet (PT-401-I) to insure all requirements have been met and included with your application. IF ALL REQUIRED INFORMATION IS NOT ATTACHED, THIS WILL RESULT IN DENIAL OF THE APPLICATION FOR EXEMPTION.

70161021

PLEASE ANSWER ALL QUESTIONS COMPLETELY AND SIGN THE STATEMENT BELOW.

Is the organization incorporated by the Secretary of State of South Carolina? Yes [ ] No [ ]

If yes, attach a copy of the articles of incorporation and by-laws.

Enter initial charter date. __________

Is the organization exempt under the United States Internal Revenue Code? Yes [ ] No [ ]

Applicable Code 501C ( )

If yes, attach a copy of the determination from the IRS.

Organization operated as a Profit __________ Non-profit __________ organization.

Did you file a return with the South Carolina Department of Revenue? Yes [ ] No [ ]

Please indicate what kind of return. __________

What name is the return filed under? __________

Are alcoholic beverages served to the general public? Yes [ ] No [ ]

Do any other individuals, associations or corporations occupy or use any part of the claimed exemption that is listed on this application? Yes [ ] No [ ] If yes, explain circumstances. If additional space is needed, attach separate sheet.

__________

Explain the use of the property, land and buildings. __________

Is any rent received for this property or any portion of this property? Yes [ ] No [ ]

If yes, from whom? __________ How much is received? __________

What is the estimated gross annual income? __________

Do you lease or rent any property for which you are requesting exemption? Yes [ ] No [ ]

If yes, from whom? __________

What limitations or restrictions apply concerning who may use the property? (A supplemental explanation sheet may be attached.) __________

Did you file for exemption with this office last year? Yes [ ] No [ ]

Was application denied? Yes [ ] No [ ]

If yes, explain circumstances of denial as stated to you in the denial letter. __________

DECLARATION OF OWNER OR OWNER'S AGENT

Subject to Penalty for Perjury, I Declare That I Have Examined the Foregoing Claim, Including Enclosures and Attachments (If Any), and to the Best of my Knowledge and Belief it is True, Correct and Complete.

Legal Signature __________ Date __________

Check Appropriate Box: Owner [ ] Agent [ ]

PLEASE NOTE

Upon completing the Application for Exemption please refer to the instruction sheet (PT-401-I) to insure all requirements have been met and included with your application.

70162029

APPLICATION FOR EXEMPTION INSTRUCTIONS

The "Tax Exemption Application", PT-401, must be completed by the owner or an agent. In order for the application to be accepted, all applicable areas must be completed. All incomplete applications will be returned, causing a delay in our consideration.

Mail to: South Carolina Department of Revenue, Property Division, Columbia, South Carolina 29214-0303.

PLEASE PRINT ALL REQUESTED INFORMATION

A. INSTRUCTIONS:

INSTRUCTION NUMBERS CORRESPOND TO THE APPLICATION FORM.

1. LEGAL OWNER, ADDRESS, SOCIAL SECURITY NUMBER, OR FEDERAL IDENTIFICATION NUMBER MUST BE SUPPLIED.

1A. INDICATE THE YEAR(S) APPLYING FOR.

2. IF REQUESTING EXEMPTION FOR REAL PROPERTY, IDENTIFY DATE THE REAL ESTATE WAS ACQUIRED.

3. LIST THE SC CODE SECTION FROM ITEM B, BELOW, AS IT APPLIES TO THE PROPERTY.

4. LIST THE COUNTY IN WHICH THE PROPERTY IS LOCATED OR REGISTERED.

5. GIVE THE LOCATION OF PROPERTY, IF DIFFERENT FROM MAILING ADDRESS.

6. LIST TAX MAP NUMBER. THIS INFORMATION IS AVAILABLE FROM YOUR COUNTY ASSESSOR.

7. IF YOU ARE APPLYING FOR AN EXEMPTION FOR REAL ESTATE, CHECK APPLICABLE BOXES.

8. LIST DEED BOOK AND PAGE NUMBER. THIS INFORMATION IS AVAILABLE FROM YOUR COUNTY ASSESSOR.

9. LIST ALL INFORMATION REQUESTED FOR VEHICLE'S. THE VEHICLE IDENTIFICATION NUMBER (VIN) IS NOT THE LICENSE TAG NUMBER. THE TYPES OF VEHICLES ARE AS FOLLOWS: AUTOMOBILE-01, BUS-02, AIRPLANE-03, BOAT-04, AMBULANCE-05, VAN-06, TRUCK-07...