Chip Limehouse

By Nicole Johnson bio | email | twitter

CHARLESTON, SC (WCSC) - Contractors who built new homes, but can't sell them may get a break on property taxes. The new law is helping homebuilders avoid foreclosure and survive the recession.

In tough economic times, homes sales decline.

"One of my board members had built a couple houses in Charleston County, million dollar houses, was having problems selling them," Philip Ford said.

Home builder advocate Ford says thousands of dollars in property taxes, must be paid on these unsold homes, by the builder, property owner, or developer. But according to a new state law they could get a tax break for new homes on the market, that aren't selling.

Supporter of the bill State House Representative Chip Limehouse says that this new law should save builders tax money on about 500 new homes, costing about $1.5 million in tax revenue statewide.

Advocates say the lost revenue is minimal because the builder will still pay taxes on the land.

"Most of the time the taxes would go to schools, and those type things. There's nobody living in these houses so there's no school kids going to the schools," Ford said. "These houses are not using water. They're not using sewer. They're unoccupied."

Builders must meet certain criteria to get the tax break: The home must be single family detached, built in 2007 or later, it must have a certificate of occupancy, and it must be unsold or unoccupied.

"This is a good way to keep people in business, keep these houses from going into foreclosure, and also have a minimal impact on the county," Ford said.

The tax exemption would only last six years from the time the builder gets an occupancy certificate. The deadline to apply for the exemption is September 30th. You can apply at the county tax assessor's office.