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Fee in lieu of Property Taxes (FILOT)
Industries investing as little as $2.5 million in Laurens County may negotiate for a Fee-in-Lieu-of Property Taxes or FILOT ("Little Fee") which will result in savings of about 40% property taxes otherwise due. A FILOT for an investment of $45 million or more can be structured using the "Big Fee." A Corporation or partnership must make the minimum investment over a five-year period to qualify.
The assessment ratio can be negotiated down from 10.5% to 6%. The agreement can extend over 20 years. The county and the fee payer may enter into a millage rate agreement, which would set the millage rate for the entire agreement period. Payment of the fee can be structured in any way acceptable to both the county and the fee payer if at least $45 million is invested over a five-year period.
The advantages to a company include:
- Savings Payments to local government are reduced significantly through negotiation of a lower assessment ratio and negotiation of an applicable millage rate.
- Planning Payments to local government are stabilized for the term of the agreement (up to 20 years).
- Scheduling With investments of $45 million or more, the payment stream can be negotiated to meet the financing needs of the company.
| Industrial Property Example Calculation: Standard Taxes vs. FILOT | ||
| $50 Million Investment | Standard Taxes | Example FILOT |
| Fair Market Value or Property Assessment Ratio for Manufacturing | $50,000,000 x 10.5% | $50,000,000 x 6.0% |
| Assessed Value Millage Rate (Clinton, Laurens County) | $5,250,000 x .2795 |
$3,000,000 x .2795 |
| Property Tax (one year) County Abatement: ($5,250,000 x .0545=$286,125) |
$1,467,375 - 286,125 | $838,500 - 0 |
| Property Tax After Abatement | $1,181,250 |  |
| Property Tax After Fee-in-lieu | | $ 838,500 |
