SC Real Property Valuation Reform Act
Assessable Transfer of Interest
Section 12-37-3150 (A)
- An assessable transfer of interest: A transfer of an existing interest in real property that subjects the real property to an appraisal.
- A property that is determined to be an assessable transfer of interest will be revalued for the following tax year.
- The following year's tax value could best be estimated by using the sales price of the property.
- Note that properties transferred prior to Jan. 1, 2007, are subject to a cap of 15 percent on the reassessment increase within a 5 year period. (improvements exempt)
- If the property is transferred after Jan. 1, 2007, it will be reassessed without the 15 percent increase cap in the transfer year (for the tax value for the following year).
- Assessable Transfers of Interest, Section 12-37-3150 (A)
- Conveyance by deed
- Conveyance by land contract
- Conveyance to a trust
- Conveyance by distribution from a trust
- Distribution under a will or intestate succession
- Conveyance by lease if duration and all options is more than 20 years or the lease contains bargain purchase option
- Transfer of more than 50 percent ownership interest in a corporation, partnership, sole proprietorship, LLC, LLP, or other legal entity
- Change in use of real property resulting from zoning change
- Passage of 20 years since application of cap or assessable transfer of interest for real property owned by a publicly held entity whose stock is traded on a regulated exchange, a pension fund or similar entity.
- Transfers Not Considered An Assessable Transfer of Interest, Section 12-37-3150 (B)
- Transfers not subject to federal income tax. Example: Transfers between spouses or transfers incident to divorce.
- Transfer of life estate or life lease retained by the transferer
- Transfer through foreclosure or forfeiture
- Transfer by redemption of property sold at a delinquent tax sale
- Conveyance to a trust if settler remains beneficiary of the trust
- Transfer for security or assignment or discharge of a security interest
- Transfer among members of an affiliated group
- Transfer among corporation, partnerships, LLC, LLP, or other legal entity if entities are commonly owned.