Property Tax:
Property tax is administered and collected by local governments with assistance from the South Carolina Department of Revenue. Real and personal property are subject to the tax. Approximately two-thirds of county-levied property taxes are used for support of public education. Municipalities levy a tax on property situated within the limits of the municipality for services provided by the municipality. The tax is paid by individuals, corporations, partnerships, etc. owning property within the state.
How the Tax is Calculated
Each class of property is assessed at a ratio unique to that type of property. The assessment ratio is applied to the market value of the property to determine the assessed value of the property. Each county and municipality then applies its millage rate to the assessed value to determine the tax due. The millage rate is equivalent to the tax per $1,000 of assessed value. For example, if the millage rate is 200 mills and the assessed value of the property is $1,000, the tax on that property is $200.
Assessment Ratios
The following percentage of each class of property is used to determine the assessed value of the property for purposes of taxation:
Manufacturing Property 10.5% of fair market value
Utility Property 10.5% of fair market value
Railroads, Private Carlines, Airlines and Pipelines 9.5% of fair market value
Primary Residences 4.0% of fair market value
Agricultural Property (privately owned) 4.0% of use value
Agricultural Property (corporate owned) 6.0% of use value
Other real estate 6.0% of fair market value
Personal property 10.5% of income tax depreciated value
Manufacturing, utility, railroads, carlines, airlines and business personal property are assessed by the Department of Revenue. All other property is assessed by the county assessor. A state property tax is levied on private carlines and airlines based on the average statewide millage rate.
Business Personal Property
All businesses are required to file a business personal property return with the Department of Revenue annually. All furniture, fixtures and equipment are to be reported at acquisition cost with a deduction allowed for depreciation. The return is due on the last day of the fourth month following the close of the tax year. No extension of time for filing will be granted.
Exemptions
South Carolina law provides for a number of property tax exemptions. To obtain an exemption, application must be made to the Department of Revenue on Form PT-401, Application for Exemption. The following properties are exempt from property tax:
A. All property owned by the following organizations , as long as the property is used exclusively for the organization's purpose and no profit is realized:
1. American Legion, Veterans of Foreign Wars, Spanish American War Veterans, Disabled American Veterans, Fleet Reserve Association and other similar veterans' organizations
2. YMCA and YWCA
3. Salvation Army
4. Boy Scouts and Girl Scouts
5. Palmetto Junior Homemakers Association and New Homemakers of South Carolina
6. South Carolina Association of Future Farmers of America and New Farmers of South Carolina
7. Any fraternal society, corporation or association
8. Any religious, charitable, eleemosynary, educational or literary society, corporation or association
9. Volunteer fire departments and rescue squads
10. Nonprofit museums
11. Nonprofit or eleemosynary community theater companies, symphony orchestras, county and community arts councils and commissions, and other similar companies
12. The dwelling house and up to one acre of surrounding land is exempt for:
12.1. a veteran who is permanently and totally disabled from a service-connected disability and the surviving spouse
12.2. the surviving spouse of military personnel killed in the line of duty
12.3. a paraplegic or hemiplegic person and the surviving spouse
12.4. Two motor vehicles for which special license tags have been issued are exempt if owned by:
12.4.1. a prisoner of war of World War I, World War II, Korean Conflict or Vietnam Conflict
12.4.2. a permanently and totally disabled veteran (In lieu of a special tag, certification from the Veterans' Administration that disability is service connected is acceptable.)
12.4.3. recipients of the Medal of Honor
12.4.4. persons required to use wheelchairs (in lieu of a special tag, the taxpayer must provide a physician's certification that they are required to use a wheelchair.)
12.4.5. All property of the following is exempt:
12.4.5.1. the state, counties, municipalities, school districts, water and sewer authorities and other political subdivisions if property is used exclusively for public purposes Note: No application is necessary to receive this exemption.
12.4.5.2. schools, colleges and other institutions of learning when no profit goes to private use
12.4.5.3. nonprofit hospitals and institutions caring for the infirmed, handicapped, elderly, children or indigent persons when no profit goes to private use
12.4.5.4. public libraries
12.4.5.5. churches, parsonages and burying grounds
12.4.5.6. charitable trusts and foundations if property is used for charitable and public purposes
12.4.5.7. nonprofit corporations providing water supply or sewage disposal
12.4.5.8. nonprofit housing corporations providing low-cost housing to the elderly or handicapped (Organization must be authorized by Section 202 of the Housing Act of 1959.)
12.4.5.9. The following exemptions pertain to personal effects and the home:
12.4.5.9.1. household goods and furniture used in the owner's home
12.4.5.9.2. household goods and furniture used in a time-share residential unit
12.4.5.9.3. clothing Note: No application is necessary to receive exemptions discussed in 5 A, B and C.
12.4.5.9.4. a homestead exemption of $50,000 is available to residents who are 65 years of age, who are totally disabled or who are totally blind. This exemption is granted by the County Auditor. Taxpayer is required to file an application with the County Auditor.
12.4.5.9.5. Up to $100,000 exemption for legal residences from ordinary school millage. Note: No application necessary for this exemption. amount of exemption may vary from year to year.
12.4.5.9.6. The following exemptions pertain to the farm :
12.4.5.9.6.1. all agricultural products owned by the producer
12.4.5.9.6.2. livestock and poultry
12.4.5.9.6.3. farm machinery and equipment
12.4.5.9.6.4. greenhouses Note: No application is necessary for these exemptions.
12.4.5.9.6.5. The following exemptions pertain to business concerns :
12.4.5.9.6.5.1. New manufacturing facilities and additions costing at least $50,000 to existing manufacturing facilities are exempt from the ordinary county taxes for a period of five years
12.4.5.9.6.5.2. Corporate headquarters, corporate office facilities and distribution facilities are exempt from ordinary county taxes for a period of five years if the cost of new construction or additions is $50,000 or more and 75 or more full-time jobs are created
12.4.5.9.6.5.3. Manufacturers' inventories
12.4.5.9.6.5.4. Merchants' inventories
12.4.5.9.6.5.5. Personal property of an air carrier operating a hub in South Carolina is exempt for 10 years
12.4.5.9.6.5.6. Water, air or noise pollution equipment and facilities
12.4.5.9.6.5.7. Other property tax exemptions are:
12.4.5.9.6.5.7.1. Real property leased on a nonprofit basis to a state agency, county, municipality or other political subdivision used for a public purpose other than office space or warehousing
12.4.5.9.6.5.7.2. Property leased to and operated by the S.C. Public Service Authority for generating or transmitting electricity
12.4.5.9.6.5.7.3. Personal property used for public display loaned or leased on a nonprofit basis to a state agency, county, municipality or other political subdivision or to an organization exempt from federal income tax under IRC section 501-514
12.4.5.9.6.5.7.4. Carnival equipment owned, leased or used by a foreign corporation or nonresident for a period of less than six months if property tax has been paid in another state
12.4.5.9.6.5.7.5. Other property owned by churches if no income producing ventures are located on the property and no profit or benefit is derived by any individual
12.4.5.9.6.5.7.6. Nonprofit community-owned recreation facilities open to the general public
12.4.5.9.6.5.7.7. Personal property in transit with `no situs' status
12.4.5.9.6.5.7.8. Intangible personal property
Fee-in-Lieu of Property Taxes
Industries investing at least $85 million in South Carolina may negotiate for a fee-in-lieu of taxes, resulting in a savings of about 40% property taxes otherwise due. If at least 200 full-time jobs are created, the minimum investment is $60 million. If 300 jobs are created, the minimum investment is $40 million. If 400 jobs are created, the minimum investment is $20 million.
The project must be financed with taxable industrial revenue bonds and structured as a purchase-leaseback. The county holds title to the fee assets.
A corporation or partnership must make the minimum investment over a five-year period to qualify. Any investments after the five-year period are considered taxable property and subject to property tax. However, a county may grant an additional two years for a total of seven years to complete a project. The minimum investment must be met within five years.
The assessment ratio can be negotiated down from 10.5% to 6%. The agreement can extend over 20 years. The county and the fee payer may enter into a millage rate agreement which would set the millage rate for the entire agreement period. Payments of the fee can be structured in any way acceptable to both the county and the fee payer.
Tax Returns
Tax returns reporting business personal property, manufacturers' property and utility companies' property must be submitted by businesses to the Department of Revenue by the last day of the fourth month after the close of the taxpayer's accounting period. No extension of time for filing can be granted.Forms to Use
PT-100 Business Personal Property Tax Return
PT-139 Water and Sewer Companies Property Tax Return
PT-140 Carline/Airline Assessment Notice and Tax Bill
PT-300 Manufacturer's Property Tax Return
PT-401 Property Tax Exemption Application
PT-417 Private Carline Tax Return
PT-418 Airline Property Tax Return
PT-420 Utility and Railroad Company Property