Real EstateReal Estate in Charleston County: Property Reassessments & How to Appeal

By: Sebrina Leigh-Jones and guest contributor, Scott Barnes of Haynsworth, Sinkler, Boyd.

We all have that person in our life – you know, the one we go to for advice or guidance about a challenging situation.  For me that “go-to ” person is Scott Barnes, a Tax Attorney with Haynsworth, Sinkler, Boyd.  Now, I must warn you, he did not come by the name “Bad News Barnes” for no reason, and true to form he did not disappoint me on a recent beautiful fall day.

The topic of our discussion was specifically about Charleston County’s Property Reassessments and the impact this was having on homeowners. I shared with him a recent conversation I had with one of our investor clients, who had received a $10,000 tax bill for his properties, which was substantially higher than he had been paying in the past.   This was not the first call I had received about this issue, nor would it be the last. In fact, they all had a common theme – “why is this happening and what options do I have to challenge it? ”

True to form, Scott looked at me with piercing eyes and says, “Sebrina, you may not like what I’m about to say. ”  Oh dear, I thought, here we go!  He proceeds to explain in great detail the South Carolina Code of Laws 12-43-210 and the adoption of a quadrennial reassessment program, and how these assessments are valued using three acceptable methods.  After 20 minutes, I will admit to feeling slightly overwhelmed and more than a little nervous about how I was going to absorb all this valuable information and share it in a meaningful way with our clients. So, I threw caution to the wind and did the only thing I could do – ask for help!  As a native Charlestonian, who is also a charming southern gentleman, Scott smiled and did the only thing he could do, which was to help me.

 In real estate, as in life, we should never be afraid to ask for help, especially when those issues relate to one of the most valuable assets we own, our home. In doing this, we will invariably gain useful information that will enable us to make informed decisions. As such, here is some insightful information about Charleston County’s Quadrennial Reassessment Program from one of the smartest men I know – in his own words.

It is true, much confusion abounds about the new values recently established in the County wide Quadrennial reassessment program. For starters, the County wide reassessment program is to be done every five years.  Some counties defer the reassessment and that deferral, as well as the December 31, 2006 Base Year value, causes confusion. For example, if prior to December 31, 2006 the last County wide reassessment program was implemented in 2004, the December 31, 2006 Base Year value was the December 31, 2003 County wide reassessment value.  Since property must be reassessed every five years, the next reassessment value would be the December 31, 2008 value even if the county deferred reassessment until 2010. This year’s County wide reassessment uses December 31, 2013 values even though the reassessment is being done in 2015. 

 The appraisal is required to be done by the end of December of the fourth (4^th) year (with notice being sent to taxpayers of any increase in value over $1,000) with the reappraised values used in the fifth year.

Additional confusion arises if a taxpayer wished to challenge the appraised value of his property in a County wide reassessment year.  In reviewing the value, both the taxpayer and Assessor are required to value the property not at the current value (the fair market value of the property in the year the appeal takes place), but at the value of the property as of December 31, 2013. Which is typically completed using three methods.

1)    The Income Capitalization Approach;

2)    The Sales Comparison Approach; and

3)    The Cost Approach.

 Taxpayers often disagree with the county tax assessor on valuation. The South Carolina Revenue Procedures Act, SC Code Ann. §12-60-1730, et seq. sets for the appeal procedure which needs to be followed in the appeal of any property tax assessment or denial of an exemption.

Scott was gracious enough to help us create a digital book that explains this process in greater detail, as well as the steps homeowners need to take to appeal the property tax assessment of their home.  We sincerely hope you find this information informative, but should you need additional information, please do not hesitate to seek the counsel of Scott Barnes with Haynsworth, Sinkler, Boyd.