Maria recently purchased a condominium in Hilton Head Island, South Carolina, which she intends to use exclusively as a vacation rental property. She will not live there as her primary residence. At what assessment ratio will the county assess this property for property tax purposes?
Correct Answer
C) 6% of fair market value
Because Maria uses the condominium exclusively as a vacation rental and it is not her primary residence, the property is assessed at 6% of fair market value under South Carolina law. The 6% ratio applies to all real property that does not qualify as an owner-occupied primary residence, including investment properties, second homes, and vacation rentals.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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