Reassessment FAQ

What is the Reassessment Program?

Act 208, as passed by the General Assembly in 1975, provides that all real property will be valued at its current market value (the price your property would sell for on today's real estate market). Act 208 also provides for the classification of all real property for assessment purposes and provides that all real property be assessed at one time.

Reassessment programs were implemented for tax years 1978, 1982, 1992 2000, and 2005 in Lexington County. As were the other programs, the 2005 reassessment was part of a continuing reassessment program designed to equalize property values, redistributing the tax on real property on a more equitable basis.

Why is Current Market Value so Important?

The market value of property will continue to change. Unfortunately, property values do not all change at the same rate; some increase or decrease at a faster rate due to location, desirability of the neighborhood or property, age and physical condition, etc. The key word in the reassessment program is accuracy. Taxes cannot be fairly levied unless the true value of each property is known. Correct assessments are not possible unless correct appraisals of property are made in light of present value, not what it was worth in past years. This is the most important function of a continuing assessment equalization system.

Will My Taxes Increase Because of Reassessment?

Some properties will notice a decrease in taxes, some will stay the same and some will pay more taxes. Reassessment is not created to raise taxes; it is intended to distribute the taxes collected more fairly among all property owners. Because of a strong real estate market since the last reassessment, market values are likely to increase. Unless a property is badly in need of repair, it is unusual for property values to go down. Because of the increase in values during reassessment, state law requires that local government reduce the millage rate (i.e. tax rate or levy) to what is called a "rollback millage."

What is Rollback Millage?

SC Code of Laws 12-37-251(E): In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage, except that the rollback millage may be increased by the percentage increase in the consumer price index for the year immediately preceding the year of a reassessment. "Rollback millage is calculated by dividing the prior year property tax revenue by the adjusted total assessed value applicable in the year the values derived from a countywide equalization and reassessment program are implemented. The amount of assessed value must be adjusted by deducting assessments added for property or improvements not previously taxed for new construction and for renovation of existing structures."

Will the Appraisal/Assessment System Continue to be Updated?

A change to the state laws governing reassessments now requires countywide reassessment programs to be scheduled every five (5) years from (i.e. 2010). The 2005 values will remain as is (no changes) until the next general reappraisal unless:

1. Construction activity has taken place on the property.
2. The property was carried as part of an acreage tract parcel the prior year and is now a lot.
3. Multiple Lot Ownership Discount: Owners of ten (10) or more lots may apply to the assessor by May 1.
4. Owners may have requested a review of the prior year's value to be effective for the current year.
5. Changes by the Assessor as required by law.

What are the Classifications of Property?

The County Assessor is charged by South Carolina Law (Act 208 of 1975 as amended) with classifying real property for assessment purposes. All property appraised by the Lexington County Assessor has been classified into four (4) categories. 1) Legal Residence 2) Agriculture use 3) Second homes, rental, or commercial 4) Manufacturing. Legal residence and agriculture use require the owner of the property to make an application. A new application is required when the ownership of property changes.

What is Legal Residence?

Legal residence refers to a special 4% assessment ratio for owner occupied homes. This results in a tax savings of over one-third of the tax bill compared to the 6% ratio if application for the special assessment is not made. For property tax purposes the term "Legal Residence" means the permanent home or dwelling place owned by a person and occupied by the owner thereof. It is the place where he intends to remain permanently for an indefinite time even though he may temporarily be living at another location. However, the same shall not include a residence maintained principally for vacation or recreational purposes (South Carolina Tax Commission Regulation 117-122) and homes occupied by the husband in one house and the wife in another.

To qualify for the special property tax assessment ratio allowed by this item, the owner-occupant must have actually owned and occupied the residence as his legal residence and been domiciled at that address for same period during the applicable tax year and remain in that status at the time of filing the application. The owner must have title (deed or will) or have an equity interest (Contract to Purchase which must be filed in the office of the county Recorder of Deeds Office) and the property must be occupied by the owner as his legal residence. The property can include not more than five acres contiguous thereto and be owned totally or in part in fee or by life estate, but shall not include any portion which is not owned and occupied for residential purposes.

Taxpayers who qualify for legal residence also qualify for additional relief as provided in the Property Tax Relief Act of 1995. This relief is applied to the first $100,000 of the property value using the school operating millage (1995) of the current millage rate as a deduction. The amount of the exemption is determined each year based on the South Carolina General Assembly revenue projections. If the owner obtains the (4%) ratio, and thereafter is found not eligible, or loses eligibility and fails to notify the assessor within six months, a penalty is imposed equal to one hundred percent of the tax paid, plus interest on that amount at the rate of one-half of one percent a month, but in no case less than thirty dollars nor more than the current year's taxes. (South Carolina Code of Laws 12-43-220(c)(1-5)

What Property Qualifies for the Agricultural Use Value?

Agricultural Use Value refers to the appraised value assigned to those acreage tracts of land qualified based on bona fide agricultural use of the property.

1. If the tract is used to grow timber, the tract must be five (5) acres or more. Tracts of timberland of less than five acres which are contiguous to or are under the same management system as a tract of timberland which meets the minimum acreage requirement are treated as part of the qualifying tract. Tracts of timberland of less than five (5) acres are eligible to be agricultural real property when they are owned in combination with other tracts of non-timberland agricultural real property that qualify as agricultural real property. For the purposes of this item, tracts of timberland must be actively devoted to growing trees for commercial use.
2. For tracts not used to grow timber as provided in item (1) of this section, the tract must be ten (10) acres or more. Non-timberland tracts of less than ten acres which are contiguous to other such tracts which, when added together, meet the minimum acreage requirements, are treated as a qualifying tract. For purposes of this item only, contiguous tracts with identical owners of record separated by a dedicated highway, street or road or separated by any other public way.
3. Non-timberland tracts not meeting the acreage requirement of item (2) qualify as agricultural real property if the person making the application required pursuant to Section 12-43-220(d)(3) earned at least one thousand dollars of gross farm income for at least three of the last five table years preceding the year of application. The assessor may require the applicant to give written authorization consistent with privacy laws allowing the assessor to verify farm income for the Department of Revenue of the Internal Revenue Service (ASCS) farm identification number of the tract and allow verification with ASCS Office.

What are Roll Back Taxes?

When real property which is agricultural use and is being valued, assessed and taxed under the provision of this article is applied to another use other than agricultural, it shall be subject to additional taxes, hereinafter referred to as roll-back taxes, the amount equal to the difference, if any, between the taxes payable on the basis of the agricultural use valuation and assessment, and the taxes that would have been paid had the property been taxed at the market value appraisal and the 6% ratio. The roll-back can be applied to the property for the current tax year (the year of change in use) and each of the five (5) tax years immediately preceding the year of change in use. Failure to notify the Assessor of a change in use, in addition to any other penalties provided by law, will result in a penalty of ten percent and interest at the rate of one-half of one percent a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than thirty dollars nor more than the current years taxes. (South Carolina Code of Laws 12-43-220(d)(4)

How Can a Property Owner Check or Challenge the Appraisal/Assessment of His Property?

All appraisal/assessments (real estate) and related ownership data can be printed from the computer both in ownership sequence and tax map number sequence. This information is available for public inspection in the Lexington County Assessor's Office from 8:00 AM until 5:00 PM Monday through Friday. Under the provision of state law, the property owner may reasonably challenge his appraisal/assessment using the following procedure. (South Carolina Department of Revenue 12-60-2520 as amended)

1. Within ninety (90) days after a dated notice of reassessment, the property owner or his agent must file a written objection with the Assessor.
2. The Assessor will conduct an informal conference with you. If your dispute can be resolved at the conference, the appraiser will resolve it and the appeal will be closed. If further review is needed, the Assessor will notify you in writing of the results.
3. If you are still aggrieved, you must request a formal conference in writing within (30) days. A formal conference will be scheduled. Your protest must contain a statement of facts supporting your position; a statement outlining the reasons for the appeal, including any law or other authority upon which you rely; and the value that you consider to be the market value.
4. After the formal review has been completed, the Assessor will notify you in writing of his finding. If you still disagree with the assessment, you have thirty (30) days to file written notice of your request to appeal your assessment to the Lexington County Board of Assessment Appeals, a panel of Lexington County citizens who serve as the final local authority.