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Assessments, Mills, and Property Tax Bills in Charleston, SC

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Real Estate Agent with AgentOwned Realty, Charleston SC

Assessments, Mills, and Property Tax Bills in Charleston, SCProperty Tax in Charleston, SC

Each year property owners receive a friendly note from our local tax authority saying we owe them money for our vehicles we drive and for real estate we own.  Often times, we are too busy with our daily routines to really question:  How did they come up with this number ?

 There are four factors used in the formula:  Appraised Value

                                                                                    Assessment Ratio

                                                                                    Total assessment

                                                                                    Millage rate

 Appraised value - is the fair market value that a property would be expected to sell on the open market.

Assessment Ratio - is the the percentage of property's value which is subject to taxation, as prescribed by law.  Assessment ratio is determined by how a property is used.   For example, in Charleston County, owner occupied properties assessment ratio is 4%.  Non-owner occupied properties assessment ratio is 6%.

Total assessment - value is derived by multiplying fair market value by the assessment ratio.

Millage rate - is set by local municipality and varies from year to year.  A mill is always equilavent to 1/1000 of a dollar.  Mills are expressed in whole numbers.  To determine tax amount, convert mills from whole number to decimal number.  Example:  250 Mills = .250.  If you hear on the news that the "mills are going up", that means that your taxes are going up.

 Here is the formula:

             Appraised value X Assessment Ratio = Total assessment       $200,000 x .04 = 8000.00

             Total assessment x Millage Rate = Tax Amount                         8,000 x .350 = $2800

 Hope this helps clarify assessments, mills and property tax bills in Charleston, SC

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Assessments, mills and property tax bills in Charleston, SC

 

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Joye Ridgeway in Charleston, SC www.CallJoye.com                iBlogCharleston.com                        QR code - CallJoye.com

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Richard L. Sanderson
Richard L. Sanderson Consulting - Kalama, WA
helping improve local property tax systems

Joye:

This is a very informative posting for your community. The only point that I would add (I'm both an appraiser and an assessor) is that appraised values are ALWAYS as of a specific date, or have particular effective date of valuation for assessment purposes.  For example, a property in South Carolina may have an effective date of valuation of January 1, 2011.  Which means the assessor considered sales during 2010 to estimate appraised values.  Home owners who might consider selling their homes, or buyers who want to purchase a home in say June or July of 2011 should NOT look to the 2011 assessed value but to current comparable sales and market activity. 

Jan 08, 2011 05:24 AM