Assessments, Mills, and Property Tax Bills 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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