Attorneys Team with Historic Community to Secure Passage of Revised Bailey Bill Ordinance

Richland County Council voted on May 7, 2013 to adopt these amendments, which extend its benefits period from 10 to 20 years and reduce the minimum rehabilitation expenditures for qualification to 20% of the fair market value of the property.  The Bailey Bill is the common name for Section 4-9-195 of the South Carolina Code, which enables counties and municipalities to offer property tax incentives to taxpayers that rehabilitiate historic property. 

“This vote demonstrated a strong commitment to historic preservation. As amended, Richland County’s ordinance provides considerable property tax savings for eligible projects and in many cases can convert an otherwise economically unfeasible idea into a feasible project,” stated Haynsworth Sinkler Boyd Shareholder, Will Johnson.

The prior ordinance required minimum expenditures of 50% of the fair market value of owner-occupied property and 100% of the fair market value of income-producing property. Further, the county voted to utilize the City of Columbia's approval process for properties located inside the city limits, as opposed to the prior practice of requiring separate applications and approvals from the city and the county. Finally, the county amended its ordinance to be consistent with state law by providing that a sale or transfer of ownership does not cause property to lose its benefits. Those changes collectively make the Bailey Bill a more valuable incentive to encourage historic rehabilitation in Richland County, expand opportunities for more projects to qualify, and streamline the application process for property located in the City of Columbia.

Robin Waites, Executive Director of the Historic Columbia Foundation said of the vote, "Investment in historic assets can transform communities. Not only does preservation offer a tool to celebrate our past, but often serves as a catalyst to revitalize neighborhoods and commercial districts, which provide significant economic benefits for the future. Historic restoration and rehabilitation can be also be costly. In an effort to offset some of the costs and challenges, incentives have been instituted at the federal, state and local level. The Bailey Bill is the strongest tool that local governments have to encourage and support historic rehabilitation." 
 
After the passage of the above-referenced ordinance, Richland County and the City of Columbia offer the full benefits available under state law. Accordingly, qualifying taxpayers that satisfy the statutory requirements may lock in the value of historic property for property tax purposes, prior to rehabilitation work, for 20 years. 

Richland County Council Chairman Kelvin E. Washington, Sr. stated, “Council approved these ordinance revisions to not only encourage owners of older buildings to invest in renovating and preserving historic properties, but also to foster a more business friendly environment, and promote and spur economic development, especially with regards to dilapidated structures in slum and blight areas.”

About Haynsworth Sinkler Boyd, P.A.
Haynsworth Sinkler Boyd, P.A. provides business, litigation, financial legal services, and government relations to national and international clients. With a history dating back to 1887, it is one of the largest law firms in the Carolinas with 125 attorneys. The Firm has offices in Charleston, Columbia, Florence, Greenville, & Myrtle Beach, South Carolina, and Washington, D.C. For more information, visit www.hsblawfirm.com.