WR SALT News: January 30th Deadline to Claim 25% Property Tax Exemption for Commercial Property

PPP Update: New Forgiveness Application for PPP Loans Under $150k Released
January 22, 2021
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February 1, 2021

WR SALT News: January 30th Deadline to Claim 25% Property Tax Exemption for Commercial Property

Did you purchase commercial property in South Carolina during 2020?  With real estate prices skyrocketing, the odds are that you purchased the property for more than last year’s property tax value.  You can reduce this year’s property tax increase on the property as much as 25% by filing an “ATI Exemption Application” by January 30, 2021.

South Carolina law allows a partial exemption from taxation of up to 25% of an “ATI fair market value” that is the result of an “Assessable Transfer of Interest” (the property tax reassessment that is triggered when a property is sold).

The exemption allowed results in a “taxable value” of 75% of the “ATI fair market value” or the previous fair market value, whichever is higher. “ATI fair market value” means the fair market value of a parcel of real property and any improvements thereon as determined by appraisal at the time the parcel last underwent an assessable transfer of interest.

ELIGIBILITY:

This exemption only may be granted to properties that meet the following eligibility requirements:

  • Are taxed at a 6% assessment ratio for the year in which the exemption is granted;
    And –
  • Have experienced a value increase due to an Assessable Transfer of Interest;
    And –
  • The property owner or their agent applies before January 31st of the year in which the exemption is first applied.

If you are looking for advice or have questions on any of the information found in the update, please reach out to the WR SALT Team.  They are ready and able to assist you.