A real estate licensee in South Carolina is advising a buyer who is purchasing a $500,000 home in Beaufort County as a second home. The buyer asks whether she can apply for the 4% assessment ratio to lower her property taxes. What is the most accurate response the licensee should provide?
Correct Answer
D) No, the 4% rate applies only to a taxpayer's primary residence; second homes are assessed at 6%.
The 4% preferential assessment ratio in South Carolina is available only for a taxpayer's primary residence — the place where the owner is legally domiciled. A second home, regardless of how often it is used or how it is structured, does not qualify for the 4% rate and is assessed at 6% of fair market value. The licensee must accurately communicate this important financial distinction to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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.
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- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
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