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i have two homes in sc in the last three weeks i have been informed that my property taxes are not four percent but 6 and also there are millage fees on top of this also they are going back three years there is something really wrong with this whole concept. i have paid my taxes the second house i put up for sale and got no response at all now this comes at me. if any ideas please respond thank you
Randy, see my reply above. The millage is not on top of the 6% it is on the 6%. You don't pay 4 or 6% tax on your property you are assessed 4 or 6% of the property value then taxed at a millage rate on that value and millage rate is different only in so far as what district you live in not how you use your home.
Late on responding here but I'm not sure you understand millage rate. Millage has nothing to do with property value, being resident or non resident. It is the rate of which an area charges per dollar assessed. You're neighbor if in the same tax area pays the same millage rate. Assessed value, on the other hand, can vary widely. They reassessed some residents this tax bill and in many cases did so incorrectly. My house was assessed well above the market value. I appealed it and it was turned back. If that's what happened you should have appealed it. It maybe too late for this year to appeal but look into it if the assessed value is above market value. They also don't seem to assess fairly although they are trying to correct this because they often didn't assess some homes for many year but all homes sold are reassessed on sale making it an unfair tax burden on the new owners and those who did and do seem to get reassessed often.
The assessment (not millage rate) is 4% for resident and 6% for non resident property. That is on the property value. This is the amount that is subject to tax. For example: If your house is worth $100K the following would be what you see.
$100,000 @ 4% = $4,000
$100,000 @ 6% = $6,000
The millage rate in my area (it differs from area to area) is .25560 this year last year it was .25090 (so yeah it went up for me a resident). I checked a home down the street in my neighborhood that I know, for a fact, is a rented home. It's millage rate is the same, the exact same, .25560.
So a home that is a resident's home their taxes would be $1022.40 minus the school tax credit for a non resident it would be $1533.60 with no school tax credit. So yes, after school tax credit for residents (which instead was added to sales tax which I would think a resident pays more of than a non resident) the tax is probably double but the millage isn't any different.
To give you an example, I'll compare my house with the house that is a rental. It's value is below mine. I paid $1400 in taxes, they pay $3400. Their property tax from last year went up a $100 or so as did mine even though I got the school tax credit. I still pay for schools as there is still some school taxes being paid in my property tax and I pay when I shop. I also pay school taxes on the property taxes on my cars as well and any other property I might own say a boat.
So, yes, I do know what I am talking about. You might say your taxes increased a lot from last year and most likely they did if your property was reassessed. Always, always look at the assessments and make sure they are inline with what sales are doing in the area because some of these assessments were based on values 2 years ago.
I don't think this is correct according to Richland County South Carolina - Richland Online. Millage rate does change whether owner lives there or it's being rented. That's why the difference is not usually $1,000 vs $1,500, but more like 3 times the difference.
Here's an example when I use Richland County South Carolina - Richland Online. I go to the webiste, and go to "online services", then click on "Property value & Tax Estimate Inquiry". It asks to enter your street address. I enter an address of "400 Sims", a house that's for sale. Appraised value of 2011 is $360,000. When I click Yes to "Legal Residence", it multiplies $360,000 by .04, then multiplies by millage rate of .2564, then subtracts the local option sales tax and the estimated tax comes out as $3,065.40.
When I click back and choose No to "Legal Residence", it multiplies $360,000 by .06 then multiplies by millage rate of .4931, then subtracts the local option sales, and the estimated tax comes out as $10,024.20.
So according to the website, millage rate does change depending on whether it's rented or owner occupied.
For my example, I used the same house, only difference is whether legal residence or not. That's why when you go to realtor.com or zillow.com, you can track what they paid for in property tax for the last few years, and when you check the same area and find two houses similar, one could be paying $1,500, but the house that's few over could be paying around $5,000.
The example I gave above the difference on a $100,000 house wasn't $1,000 vs. $1500 because I did not know what the amount of school taxes would be credited on the $1,000. It could be as much as $500 and probably was.
I found the actual bill for 400 Sims
Millage was .3912 County and .0981 for local a credit of $3,389.76 was given a county relief (school tax I assume) and $965.88 for local (also probably school tax). These two credits reduce the "effective" rate but the actual rate which is applied to other services such as fire, library etc. is at .3912. If you know of a rental check that out. You can get the tax info herehttps://www4.rcgov.us/TreasurerTaxInfo/Main.aspx , use the form to find the owners last name.
It's really confusing but basically a millage rate is set at the beginning of the tax season and is the same but the amount is reduced for owner occupied by removing a portion of the school property tax as it applies to operation seeming to reduce the millage rate for owner occupied but only as it applies to schools not to services such as fire, library, recreation, county operations etc.
The website giving you estimated tax is adjusting the millage rate to account for the school tax credit. It's just an estimate and not actual as the actual tax bill shows the homeowners paid less than the $3,000 some odd dollars the form figured.
Further, using the tax bill I found for 400 Sims the owner occupied home paid $2600 while if the home was a second home or non owner occupied the tax bill would have been about $7050.
Okay, I see what you're saying. It's confusing when the estimator changes the millage rate between owner occupied and non-owner occupied to estimate it, but it's actually the school tax credit and whatever else that changes. But is it still safe to assume that non-owner occupied will pay around 2.5-3 times the property tax compared to owner occupied?
Bummbull,
The answer is yes.
If you are an owner occupant, you get a credit for the school tax
off of your real estate bill.
That is how it works.
If you choose to buy a second home in South Carolina and live in
another state, you must pay whatever real estate taxes the County
charges you including the real estate portion, since you aren't living
in the second home.
If you choose not to buy a second home in South Carolina, so be it.
It's your choice.
Noone is putting a gun to someone's head and forcing them to
buy a home here.
If you can afford a second home, really, in this day in age,
pay the taxes.
Otherwise, don't buy.
Simple. isn't it?
If you can afford a second home, really, in this day in age, pay the taxes. Otherwise, don't buy.
Another option would be to buy a second home in a more tax-friendly state for second homes such as NORTH CAROLINA. All real property is taxed equally (What a concept!). There is no differentiation between resident home owners and second home owners.
Just to put in my two cents, I have a home in SC and always dreamed of buying a second place on the lake for weekends. Four years ago the bottom feel out of the market and the lake level dropped to a record low ( another story altogether) but this was the buying opportunity I was waiting for......... bought a 1,600 ft 30 yr old house on the lake for $350,000. First year, tax which was included in closing was about $1,500, up from the previous owners tax bill of $800 since the appraised it on the purchase price. Second year, OMG.... The county came back and said since this was a second home ( they did not care in-state or out or state) I lost the homeowners exemptions, lost the school tax reductions, etc.... my tax bill is now $7,000 ( yes over $550 per month in taxes) and it was retroactive so I owed about $10,000 in back taxes plus I need to add to my current escrow account. I wanted to cry. My real estate agent, who was very experienced and specialized in lake property NEVER MENTION THIS LITTLE FACT. (Nor did the lawyer at closing, recommended by my agent.)
So, we must educate anyone who is buying a second home in SC, be aware of the tax burden........
Two years ago I had a relative in trouble and I considered buying their home (to save it) and renting it back to them. The tax increase that would have resulted in an additional $350 a month in taxes. The bank took the house and we helped them buy another. Stupid situation.
VBChaz,
Why do you think they tax second homes of residents and non residents so high?
It just doesn't make any sense to me. Are they trying to discourage rentals?
No wonder everyone buys mobile homes for their second homes. I bet
the tax is next to nothing compared to what all of you are describing in price.
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