Property Tax: What You Should Know (qualification for legal residents - 4%)
Qualification for Legal Residence (4%)
What is required:
The owner-occupant must have actually owned the residence for some period of time in the applicable tax year.
The owner-occupant must have occupied the residence as his legal residence during the applicable tax year.
An application must be completed and returned to the tax assessor's office along with a copy of the owner's driver's license and vehicle registration showing the correct address prior to the first penalty date for payment of taxes.
Points of interest regarding the application; under penalties of perjury the taxpayer certifies the following:
It is his legal residence and where he is domiciled. Exception: member of the US Armed Forces on active duty.
The taxpayer is required to inform the tax assessor's office of change in classification within six months of the change.
Only one home in the state of South Carolina is exempt for all members of the household. In the case where husband and wife are not living together, separation papers are required to be provided to the tax assessor's office in order for both the separated husband and wife to obtain the four percent assessment on their respective homes.
Vehicle registrations for all motor vehicles registered in the name of the owner-occupant are required.
If the property qualified as legal residence on Jan. 1, it will qualify for the full year at the owner occupied four percent rate. Exception: unless the taxpayer changes his or her legal residence to another property purchased or owned prior to Jan. 1 of the tax year.
If the property is considered non-owner occupied for current tax year, but the new owner applies and qualified for legal residence, the property will be taxed at the new four percent rate for the full year.
If the property qualifies as owner occupied as of Jan. 1, but the new owner will not claim this as legal residence, the current year will be taxed at the four percent rate and the next year taxes at the six percent rate. Exception: unless the taxpayer (seller) changes his or her legal residence to another property purchased or owned prior to Jan. 1, of the tax year.
Other forms of identification may be used in lieu of a drivers license and vehicle registration. One example is an owner-occupant's most recently filed SC individual income tax return. The taxpayer may contact the assessor's office for specific forms of identification that will be accepted.
