Known as ATI fair market value exemption from property tax, property purchases may be eligible for lower taxes the year of purchase. Property owners of homes, investment properties, vacant lots, and commercial properties that are taxed at 6% are included. In short, if you paid a higher sales price than the Tax Assessor’s value of the property at the time of purchase, there are potential tax savings for you in future years to come. If, however, you paid less than the Tax Assessor’s value, then filing for the exemption won’t likely do much for you.
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.
South Carolina Code Ann. § 12-37-3135 provides for a property tax exemption where:
(1) a property is taxed at a 6% assessment ratio before a transfer (which generally means used as a second home, rental or commercial property);
(2) where the property remains taxed at 6% ratio after the transfer; and
(3) the purchase price exceeds the value at which the property was taxed prior to the transfer.
If all criteria are met, then an exemption of up to 25% of the new valuation may be applied in the year after the sale. This means that the exemption reduces the increase in taxes, otherwise applicable due to your purchase of the property. In order to qualify for prior tax year, an application must be completed and submitted to Beaufort County on or before January 30th. Recent case law has determined that a taxpayer can apply for the ATI Fair Market Value Exemption for subsequent tax years even if they have initially missed the opportunity.
See a sample worksheet of how the County determines the ATI exemption HERE
Owners may apply for this exemption directly with Beaufort County via the instructions below. We can also coordinate the submittal on behalf of owners seeking our assistance. Instructions are below:
How to file for an Exemption
Beaufort County has an application for this exemption available on its website www.beaufortcountysc.gov. From their homepage, you should proceed as follows:
- Click on “Offices” along the top menu bar;
- Click on “Assessor”
- Click on “Forms” on the right-hand side of the page
- Select “Assessable Transfer of Interest Exemption (Point of Sale)” near the bottom of the page
- Complete and submit the form to Beaufort County.
The exemption is applicable for as long as you own the property and it is taxed at the 6% assessment ratio. You must apply for it before January 30th. It is well worth your effort to review and recognize this savings if it applies to your circumstance.
Need some Help??
The Beaufort County Assessor’s office is happy to help with questions and additional information. You can contact them directly: (843) 255-2400
and find more information on their website: https://www.beaufortcountysc.gov/assessor/
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Does the 6% Point of Sale Exemption apply to homes purchased in 2022? The home was used as a rental prior to sale and will be rented after we close on the home.
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Yes a Second Residence would fall under the 6% property tax ratio, the 4% is only for owner occupied homes. You can find more information on the Beaufort County site: https://www.beaufortcountysc.gov/auditor/tax-info.html
Hope this is helpful!
Written on
I purchased my home in 2021 it was used as a rental I use it for a secondary home. I applied for the 6% exemption in January of 2022 will that apply as long as I own the home or do I have to reapply every year?
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You can only apply for this exemption one time. In following years the County will use millage rates that are subject to change every tax year and vary depending on the location of the property within the County.