According to the Tax Foundation, South Carolina ranks roughly in the middle of the pack when it comes to property taxes in the U.S. Both real property and business personal property are taxable here, though there is no tax on intangibles.
This article highlights business personal property tax in South Carolina. If your company operates in other states as well, check out our blog for more information about property tax in New York, New Jersey, Maryland, Texas, and California.
Real Property Tax in South Carolina
Real property is reappraised on a countywide basis every five years, with a 15% cap on the increase in fair market value (except in the case of an assessable transfer of interest—the transfer of an existing interest in real property that subjects it to appraisal). The fair market value is then multiplied by the assessment ratio—4% for an individual’s primary residence and 6% for other real property. Then, the millage rate is applied to the assessed value to arrive at the tax due.
Note that businesses that invest $2.5 million or more in South Carolina (or $1 million in certain counties) may be eligible to pay a fee in lieu of property taxes, which could reduce their assessment ratio and eliminate increases in the value of real property for a certain period of time.
Key Dates For South Carolina Real Property Taxes:
Business Personal Property In South Carolina
Tangible business personal property—furniture, fixtures, and equipment owned and used by a business—is assessed annually in South Carolina. In general, taxes are assessed and collected by local governments, with some assistance by the South Carolina Department of Revenue.
Businesses must report the total cost of their assets as well as the net depreciated value using Business Personal Property Return PT-100. The value of property is equal to its depreciated basis for income tax purposes; however, the depreciation may not exceed 90% of the total acquisition cost for each item. Once the fair market value has been determined, the assessment ratio is applied. Generally, business personal property is assessed at 10.5% of fair market value. The assessment ratio is determined by the property classification (manufacturing, aircraft, commercial fishing boats, etc.), but the majority of business personal property has a 10.5% assessment ratio.
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Key dates For South Carolina Business Personal Property Taxes:
In South Carolina, property tax bills are calculated by multiplying the net depreciated value on your return by the assessment ratio, which is generally 10.5%. The assessed value is sent to the County Auditor in the county where the property is located, where the applicable millage is then applied for that taxing district.
Businesses may file online through MyDORWAY, the state’s online tax system.
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