Newly signed SC law prevents property tax increase for PCSers Published March 25, 2014 By 1st Lt. Earon Brown 20th Fighter Wing Public Affairs SHAW AIR FORCE BASE, S.C. -- Active-duty military members preparing for a permanent change of station now have the opportunity to maintain their current property tax rate with Gov. Nikki Haley's signing of bill H. 3027, The Military Homeowner Protection Act of 2014, on March 13. Originally proposed by state Rep. Murrell Smith, the new law enables military homeowners leaving the state or moving within it to maintain an owner-occupied tax rate of 4 percent, as long as two stipulations are met; one, the service member remains on active duty, and two, places the property on the market within 30 days of purchasing another home. "What a great responsive state government," said Col. Clay Hall, 20th Fighter Wing commander. "This new law is directly contributable to the Airmen of the 20th FW and highlights how well the state takes care of the military." Under section one of the bill, active-duty homeowners who are legal residents of another state are nonetheless considered a legal resident of and domiciled in South Carolina, as long as their permanent duty station resides in the state. Those who receive orders for a PCS outside of the state or a temporary duty assignment lasting at least one year may continue to claim the 4 percent rate. Section one goes on to say these exemptions are also applicable to two residential properties within the state, as long as efforts are made to sell the first property 30 days after acquiring the second. The member must continue to try and sell the property in any year which the 4 percent rate is claimed, and the rate may not be claimed on both properties for more than two property-tax years. According to the South Carolina Department of Revenue, property taxes for homes are based on their fair market value determined by the county, to which a unique assessment ratio is applied; more specifically, 4 percent for a primary residence and 6 percent for all other real estate. This assessed value is then used in determining the amount of tax due. Prior to the signing of H. 3027, property tax relief was only available to service members if the property was their primary residence. For those unable to sell their home or desiring to rent the property out, this meant the tax rate would jump to the 6 percent threshold. Now, as long as they apply for it, service members can stay at the 4 percent rate, potentially saving thousands of dollars. "This legislation directly and positively impacts our service members across the state and enhances South Carolina's military reputation," said Maj. Gen. Jake Polumbo, Ninth Air Force commander. "For some of our Airmen and their families, a few more dollars in their paycheck each month will make a huge difference." Reductions in property taxes are not the only changes that have been made on the behalf of service members in the state. In June 2013, the Military Service Occupation, Education and Credentialing Act was signed. The legislation came about in an effort by the South Carolina General Assembly to prevent delays in honorably discharged service members finding post-military employment, as well as establish educational opportunities for those discharged members and the spouses of active-duty members. Recently, H. 4859, the Military Family Quality of Life Enhancement Act, was presented to the South Carolina General Assembly. Outlined in the bill are amendments that would address predatory lending practices aimed at service members, Medicaid waiver protection for retirees, creating a "Military-Connected Children Welfare Task Force," establishing a comprehensive annual report regarding the performance of military-connected children in state schools, adding a veteran's treatment court program, and changing eligibility requirements regarding in-state tuition for service members and their dependents. These measures address what have been regular concerns expressed to commanders by personnel at Shaw AFB. "Two years ago I asked our Airmen how the state could better support Shaw and [property tax] was one of two requests," said Hall. "I presented them to the governor during the annual military commander's meeting and now the state has acted on both." These concerns received voicing during prior meetings of the South Carolina Governor's Military Task Force. The task force acts as an advisory committee to the governor and the General Assembly on various military matters that affect the state. Part of the focus is to exchange information on the current climate and challenges facing the state's military installations and their personnel. Local entities also took part in the effort to make bills like H. 3027 a reality, including the Shaw-Sumter Partnership for Progress. "We all worked this together," said retired Maj. Gen. Dutch Holland, executive director of the Shaw-Sumter Partnership for Progress. "It was actually something that was brought to our attention by Col. Hall and the people of Shaw. We took that to our local legislators and they said 'yes, it makes sense.' We got state legislators involved and Rep. Murrell Smith was the one who actually put the pen to paper and put the proposed legislative language through the House of Representatives." "We're proud of the base and the leadership out there making us aware of the issue and Rep. Smith for pushing it through," added Holland.