In 2006, the South Carolina legislature passed property tax reform. The new law was enacted in January 2007, but most counties did not change their property tax evaluations until June or July of 2007. Horry County changed their property tax evaluations at that time. Many of you saw the changes when you received your tax bill in October of 2007. You might be curious about what changed and how the changes effect you.
Owner occupied properties saw the biggest tax decrease because the school operating taxes were eliminated for owner occupied properties.
The other biggest change was how properties are assessed. Previously, South Carolina assessed property values every 5 years. Then, the county used their millage rate and tax rate to calculate your property taxes. Now, the point of sale becomes the new assessed value. Your property taxes will be based on the sale price of the property.
The new law capped the increases in assessed value to 15% over a 5-year period. Also, the law enacted spending and millage caps on local governments.
Investors and second home owners did see an increase in their property taxes after the new changes took place. Many investors, vacation home owners and businesses have decided to not invest in South Carolina based on the increased property tax. South Carolina REALTORS are active in getting changes to this law passed. A Bill will be presented to a House Sub-Committee this week. Watch this Blog for updates on the property tax reform in South Carolina.
Plantation River Tours Murrells Inlet
15 years ago
1 comment:
I am a 25 year resident of Hilton Head Island. I decided to rent my personal home out for a few weeks last summer to help out in the softening economy. Because of that, the Beaufort County Assessor has now denied my property owner 4% ratio and my taxes went up by $9,000. This is absurd. This is my home. Aren't I entitled to 1 legal domicile like everyone else? I live here 40+ weeks per year. I pay the 1 penny school tax all year long and now have to take on the horrific burden that we are putting on our second homeowners as well. FYI - I paid the 11% accommodation tax on my rentals and will pay income tax as well. I guess they want blood and my firstborn too. I'm a Realtor and I simply can't believe how we are trying to kill our best industry - tourism.
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