Mr. Booth has provided legal advice and representation to many clients on a variety of issues when dealing with property taxation. He followed closely the enactment of Act No. 388 in 2006 which made substantial changes to the way counties value and tax real estate.
He follows all proposed changes to the law and has studied carefully the amendments passed since 2006 including the amendment passed in 2011 providing for a 25% discount notwithstanding the impact of ATI for the year after the sale and future years as long as the owner files for the discount by January 31 of the year after the sale.
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FREQUENTLY ASKED QUESTIONS ABOUT PROPERTY TAXATION:
What is the South Carolina Tax Reform Act of 2006?
The Tax Reform Act took effect on January 1, 2007, and dramatically changed property taxation in South Carolina.
The five major changes made by the Tax Reform Act were:
- An owner-occupied residential property was exempt from all property taxes imposed for school operating purposes.
- The closing of the sale of both residential and commercial properties is subject to the real property appraisal and a change in the valuation for the year following the closing.
- The increase in the valuation of residential and commercial property was limited to 15% between each countywide reassessment usually every five years unless an accessible transfer of interest occurred.
- Improvements made to real property and placed in service after January 1 may be assessed for a portion of the tax year payable when taxes are due on the property for the property tax year but this will require an ordinance adopted by the county.
- Property taxes may be paid in installments.
Why are the real estate taxes for residential property not valued the same as a rental property so different?
Other than the difference between 4% and 6% for determining the assessed value, a residential property is exempt from all property taxes imposed for school operating purposes while a rental property is not exempt from such taxes.
What is an Assessable Transfer of Interest (“ATI”) as found in the Tax Reform Act?
The Tax Reform Act introduced the assessable transfer of interest or ATI and the occurrence of an ATI triggers full recognition of the full market value of the property for the year after closing.
What is the 15% cap?
For each countywide reassessment, the assessor cannot increase the value of the property by more than 15% between the years of reassessment.
What are the primary statutes dealing with real estate taxation?
Statutes are cited as follows: S.C. Code Ann. § 12-37-3150, S.C. Code Ann. § 12-37-3135; S.C. Code Ann. § 12-37-3140; S.C. Code Ann. § 12-43-220