S.C. Code Ann. § 12-44-40 – Fee agreement; economic development property to be exempt from ad valorem taxation; exemption period; inducement resolution; location of exempt property; criteria to qualify as economic development property

(A) To obtain the benefits provided by this chapter, the sponsor and the county must enter into a fee agreement requiring the payment of the fee described in Section 12-44-50. The county may not enter into a fee agreement unless the county council adopts an ordinance approving the agreement with the sponsor.
(B) If the county and the sponsor enter into a fee agreement, all economic development property is exempt from all ad valorem taxation imposed by Chapter 37 of Title 12 for the entire exemption period. Upon termination of the exemption period, the property is subject to property taxation in the manner provided by law, unless the property is otherwise exempt.
(C) Subject to the provisions of subsection (D) and the provisions of Section 12-44-110, real or tangible personal property of a sponsor or sponsor affiliate for which expenditures have been incurred by the sponsor or sponsor affiliate in connection with a project or a portion of it qualifies as economic development property, if the expenditures are incurred after, or within sixty days before, the county takes action reflecting or identifying the project or proposed project including, but not limited to, the adoption of an inducement or similar resolution by county council and before the end of the investment period.
(D) A county has two years from the date it takes action reflecting or identifying the project, or proposed project, to adopt an inducement resolution if the inducement resolution was not the original county action reflecting or identifying the project or proposed project. Otherwise, expenditures incurred before adoption of the inducement resolution do not qualify as economic development property.
(E) If a fee agreement is not executed within five years after the inducement resolution is adopted by the county council, the real property or tangible personal property of a sponsor and sponsor affiliate for which expenditures have been incurred by the sponsor and sponsor affiliate with respect to the project do not qualify as economic development property.
(F) To be eligible to enter into a fee agreement, the sponsor shall commit to a project which meets the minimum investment level and, with respect to applicable enhanced investments, the total investment and the minimum job creation levels required for an enhanced investment.
(G) The project which is the subject of the fee agreement must be located in a single county or in a multicounty park or on contiguous tracts of land in more than one county. When a tract crosses a county boundary, all counties in which the tract is located must be parties to the fee agreement, which must provide the manner in which the fee payments must be distributed among the counties and the fee agreement must set a minimum millage rate not lower than the millage rate applicable to the site in the county in which the greatest amount of investment occurs.
(H) The county council shall evaluate projects for classification as economic development property, based on criteria that include, but are not limited to:
1. (1) the purposes to be accomplished by the project are proper governmental and public purposes;
2. (2) the anticipated dollar amount and nature of the investment to be made; and
3. (3) the anticipated costs and benefits to the county.
(I) Before entering into a fee agreement, the county council shall find that:
1. (1) the project is anticipated to benefit the general public welfare of the locality by providing services, employment, recreation, or other public benefits not otherwise adequately provided locally;
2. (2) the project gives rise to no pecuniary liability of the county or incorporated municipality or to no charge against its general credit or taxing power;
3. (3) the purposes to be accomplished by the project are proper governmental and public purposes; and
4. (4) the benefits of the project to the public are greater than the costs to the public.
(J) In making the findings of subsections (H) and (I), the county council may seek the advice and assistance of the department or the Board of Economic Advisors.
(K) If the governing body of a county has by contractual agreement provided for a change in fee in lieu of taxes arrangements conditioned on a future legislative enactment, a new enactment does not bind the original parties to the agreement unless the change is ratified by the governing body of the county.
(L)
1. (1) Upon agreement of the parties, and except as provided in item (2), a fee agreement may be amended or terminated and replaced with regard to all matters, including the addition or removal of sponsors or sponsor affiliates.
2. (2) An amendment or replacement of a fee agreement may not be used to change the millage rate, discount rate, assessment ratio, or length of the agreement.