How is Property Taxed in South Carolina?

As per state law, all property in South Carolina is to be appraised at 100% of its fair market value and assessed at one of the three mandated ratios.  The ratios are as follows:

4% - Legal Residence and Qualified Agricultural

6% - Commercial, Rental, Vacant Land, etc.

10.5% - Industrial, Automobiles, Boats (Personal Property Taxes)

Applied to the assessed value is the county Millage, or the factor that must be applied to the assessed value of all property in the county in order for the county to meet its budget for any given year.  You must check each county for Millage and each city.

A Homestead Exemption is provided for residents who are 65 years or older, for those who are totally disabled, or are legally blind.  The exemption is in the amount of $20,000 of the market value.

Example

The property tax is determined by multiplying the fair market value by the assessment ratio by the millage rate.  For example, the tax on you home is determined in this way:

$50,000            Fair Market value of home

       X 4%        Assessed ratio

  $ 2000           Assessed Value

   X.196            Millage rate for Oconee County year 2000

  $  392            Taxes due (County only)

If you live in the city, you must add the city millage to calculate the total taxed due on your home.  You may call the Assessor Office in any County to find out the current millage for the county and each city.

How do I get the best tax rate for my home?  If you own a home, you want to be sure to obtain the 4% assessment rate if you live in the home as your legal residence.  Otherwise, your tax rate will be 6%.  To obtain the lower rate, you will need to complete an application with the county assessor.  This should be done as soon as you move into your house, but may be filed anytime before January 15, when taxes are due.  Once you file this application, you will not need to complete another one, unless ownership changes or use of the property changes.

What is personal property tax?  Personal property tax is collected annually on motor vehicles, recreational vehicles, watercraft (boats, wave runners, jet skies, etc.) and airplanes.  Personal property tax also applies to equipment, furniture, fixtures and machinery primarily used by businesses.  Household goods in your residence are exempt from person property tax.

How is Fair Market Value Determined?  To find the value of any piece of property, the assessor must know the price for which properties similar  to it are selling, what it would cost today to replace, how much it takes to operate and repair, what rent the property may earn, and other facts affecting its value, such as the current rate of interest charged for borrowing the money to buy or build properties.  Along with this information, the assessor will determine the property's value considering three different approaches:

1.  Sales Comparison Approach-This method compares property to others which have sold recently.  Size, quality, condition. location and the time of sale are important facts which are considered.

2.  Cost Approach-A second way to value property is based on how much money it would take, at current material and labor costs to replace the property with one that is similar.  If the property is not new, the assessor must also determine how much it has depreciated.  also, the assessor must determine how much the land would be worth if it was vacant.

3.  Income Approach-Another way to value property is to evaluate how much income the property would produced if it were rented as an apartment house, a store or other sort of business.  

All county assessors receive training in appraisal techniques and must be licensed or certified by the South Carolina Appraisers Board.  It is important to remember that the assessor does not create value, only the market place can do that.  The principle of supply and demand is the largest single factor in determining a property's worth.