The South Carolina Real Property Valuation Reform Act of 2006 requires properties to be reassessed when there is a an "assessable transfer of interest", usually a change in ownership due to a sale. Also known as a point of sale reassessment, it can cause large increases in property tax bills.
Last year the General Assembly changes the rules for commercial property, including rental property and second homes. Such property is still reassessed, but the new value is discounted by 25 percent if the owner applies for the "commercial exemption." The discounted assessment cannot be lower than the assessment prior to the sale or transfer.
So what's the affect been? Large commercial deals are benefiting while the impact on second home sales is limited as many second homes are located along The Grand Strand where prices have been falling in recent years. Still, if you've owned property for a long time and still have a gain, the break may help you get a higher price than the guy next door who bought a few years ago.
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