The Bailey Bill (SC Code of Laws §4-9-195 and §5-21-140) allows local governments to provide special property tax assessments for rehabilitation of historic buildings. In May 2013, Richland County revised its ordinance to strengthen these incentives, making renovation projects more affordable for home and business owners.
The main feature of the Bailey Bill is to assess property on the pre-rehabilitation fair market value for twenty (20) years. This means the owner of a historic structure continues to pay property tax on the pre-rehab value of the property, but does not pay tax on the increased value due to the renovations for twenty years. A minimum of 20% of the fair market value of the building must be spent on qualified rehabilitation expenditures.
Qualifications
Eligible Buildings
- Listed on the National Register of Historic Buildings individually or a contributing property in a district
- Determined eligible for the National Register by the South Carolina Department of Archives & History (SCDAH)
- Listed on the Richland County Bicentennial Committee Historic Homes and Buildings Landmark Program (1981)
- Columbia City Landmarks
- Town of Blythewood designated Historic Sites
- Designated Historic by Richland County Conservation Commission (RCCC)
For buildings that do not fall under the first five categories, an owner may apply to RCCC for designation(PDF, 158KB). The structure must be at least 50 years old and demonstrate historic significance by meeting one of three criteria: association with historical events; association with the lives of significant people; or architectural importance.
Other Qualifications
The rehabilitation work must meet standards and be approved as appropriate for the historic building and historic district in which it is located. SCDAH, as the reviewing authority, will approve the proposed work plan except in the City of Columbia, whose Design/Development Review Committee will grant approvals. For types of work eligible for the 20% threshold, visit the Qualified Rehabilitation Expenditures page.
Process
To be eligible for the special tax assessment, a historic property owner must apply for Preliminary Certification prior to beginning work. The application includes documentation of fair market value, historic designation, and a thorough description of the rehabilitation planned.
Once the Preliminary Certification is approved, work may begin and must be completed within two (2) years.
Upon completion of the project, the owner submits a Final Certification form, invoices to document qualified expenditures, and pays a fee (listed in the Final Certification form). The work will be inspected and if approved, County officials will be notified that the property has been duly certified and is eligible for the special tax assessment established at the time the preliminary certification was made.
Questions Contact the Richland County Conservation Commission for more information.
The following list outlines the Standards for Rehabilitation.
- A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment.
- The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided.
- Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken.
- Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved.
- Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall be preserved.
- Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence.
- Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible.
- Significant archaeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken.
- New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment.
- New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.
Eligible Expenditures
The following expenditures qualify for the 20% minimum investment of the fair market value of the building to be rehabilitated.
- Roof: roofing, flashing, roof deck, roof structure, dormers, vents, chimneys
- Exterior walls: repairing brick or stone masonry, repointing mortar joints, patching stucco, repairing, patching, or replacing historic wood or metal features, painting
- Windows and doors: repairing existing windows, new sash where missing or too deteriorated to repair, hood mold, sills, shutters, exterior door and window frames, exterior doors, sidelights, transoms
- Porches: roof, flashing, deck, structure, columns, posts, railings, flooring, floor structure, foundation
- Foundations: repairing brick or stone masonry, repointing mortar joints, patching stucco
- Exterior Restoration: removal of later features and new work duplicating missing historic features
- Repair and stabilization of historic structural systems: structural repair and stabilization of all historic structural elements exclusive of interior finish materials (interior finish materials are not included – except plaster, see below)
- Restoration of historic plaster: work done on historic plaster, including repair of historic plaster, new plaster where it was a documented historic finish, use of wood or metal lath, documented decorative or flat plaster features
- Energy efficiency measures except insulation in frame walls: insulation in the attic or crawlspace, interior or exterior storm windows, storm doors, weather-stripping
- Repairs or rehabilitation of heating, air-conditioning, or ventilating systems: repairs to existing or installation of new HVAC systems, installing flue liners in historic chimneys
- Repairs or rehabilitation of electrical or plumbing systems exclusive of new electrical appliances and electrical or plumbing fixtures: repairs to existing or installation of new electrical service from the point of supply by the utility to the outlets or junction boxes for fixtures, repairs to existing or installation of new plumbing system from the supply at the water meter (or at the supply side of the pump for a well) to the fixtures and on the sanitary sewer system from the fixture to the sewer or septic tank (excluding the tank and drainfield), repairs to existing historic electrical and plumbing fixtures
- Architectural and engineering fees
- Work on historic outbuildings
Ineligible Expenditures
The following expenditures do not qualify for the 20% investment.
- An addition to the existing building
- Interior alterations/floor plan changes
- Changes in the kitchen
- Changes in the bathroom(s)
- Interior painting, wallpaper, other decorative finishes
- Removal or alteration of significant historic features – crown molding, picture rail, beaded board, chair rail, wainscot, baseboard, wood floor, tile floor, stairs, door trim, window trim, transoms, historic hardware,
- New building on the site
- Work on non-historic outbuildings
- Site work/grading
- Landscaping/plantings
- Fences, other non-planting landscape features