Nonprofits building homes for low-income residents will get a sales tax exemption under legislation signed into law by Gov. Nikki Haley last week. The law exempts nonprofits from paying sales tax on materials to build or repair homes for low-income individuals.
The bill’s author, Rep. Garry Smith (R-Simpsonville), said he introduced the legislation so organizations throughout the state could help provide stable home lives to more people. He said, “I’ve never been without a home and I can’t imagine what it would be like to live with out one.”
The exemption applies to all materials used to build the homes. Habitat for Humanity of Greenville County President and CEO Monroe Free said he expects the new law to save the organization an average of $4,000-$5,000 per new build. Habitat builds about eight to 12 homes a year in Greenville, which would translate to $32,000-$60,000 a year, he said.
New homes cost the organization about $70,000 each to build, according to Habitat.
“The basic impact of this new legislation is that Habitat, across the state of South Carolina, will be able to help more families,” Free said.
One of the largest nonprofits to provide housing for low-income individuals, Habitat has 36 affiliates across the state and pushed hard to get the legislation passed.
In Greenville, Habitat will start construction in a couple of weeks on its 330th home, Free said, adding the tax exemption will also help them repair and weatherize houses.
He said he was grateful state legislators made this bill a priority. “I think it shows their care for the poor in their communities.”
