Susan, age 67, owns a home in Richland County, South Carolina, which she occupies as her primary residence. She has been approved for both the 4% owner-occupied assessment ratio and the South Carolina Homestead Exemption. Her neighbor argues that having both benefits is not allowed and that she must choose one. Which statement correctly describes Susan's situation under South Carolina law?
Correct Answer
A) Susan may receive both benefits simultaneously, as the 4% assessment ratio and the Homestead Exemption are separate and cumulative benefits.
Under South Carolina law, the 4% owner-occupied assessment ratio and the Homestead Exemption are two entirely separate and independent tax benefits that can be used simultaneously. The Homestead Exemption (S.C. Code Ann. § 12-37-250) provides a $50,000 fair market value exemption for qualifying residents (age 65+, totally disabled, or legally blind), reducing the taxable value before the assessment ratio is applied. The 4% ratio then applies to the remaining assessed value. Both require separate applications and both may be received concurrently — they are cumulative, not mutually exclusive.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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