James sold his primary residence in Columbia, South Carolina, where he had been receiving the 4% owner-occupied assessment ratio. The buyer, Patricia, intends to use the home as her primary residence as well. Which statement best describes how the 4% assessment ratio applies after closing?
Correct Answer
C) Patricia must submit a separate application to the county assessor to receive the 4% ratio.
The 4% owner-occupied assessment ratio does NOT transfer automatically from seller to buyer in South Carolina. After closing, Patricia must file a separate application with the county assessor's office and provide proof of primary residency to qualify for the 4% rate. Until she applies and is approved, the property will be assessed at 6%.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
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