ATI Exemption–get a tax break!
Reminder: The South Carolina Assessable Transfer of Interest (ATI) Property Tax Exemption is available to 6% property purchasers. Remember, to claim the exemption for property purchased in 2024, property owners must file by Jan. 31, 2025.
ATI Exemption
The South Carolina Assessable Transfer of Interest (ATI) Property Tax Exemption is a provision in state law advocated and supported by SCR in 2011. It allows homeowners and businesses to reduce their property tax burden after a transfer of ownership. Here’s a clear explanation to help you break it down:
What is the ATI Property Tax Exemption?
The ATI exemption protects property owners from large increases in property taxes when there’s a change in ownership, such as selling a home or business property. It prevents property taxes from being based on the full market value after a transfer and provides a tax reduction for qualifying properties.
Why is the ATI Exemption Important?
When a property is sold, its taxable value typically resets to the market value, which can lead to a significant increase in property taxes. The ATI exemption reduces this taxable amount by up to 25%, keeping property taxes more affordable for the new owner.
Who Qualifies?
Buyers that purchased 6% property (second home, vacation home, commercial–any property taxed at the 6% rate) in 2024. Other transfers can also trigger an ATI–check with your CPA if you have questions.
How Much is Exempted?
Property owners may qualify for a 25% exemption on the difference between the prior taxable value and the new market value after the transfer.
For example:
- Previous taxable value: $200,000
- New market value (determined by sales price): $300,000
- Difference: $100,000
- Exempted amount (25%): $25,000
- New taxable value: $275,000
How to Apply for the ATI Exemption?
Visit https://www.beaufortcountysc.gov/assessor/documents/WEB%20ATI%20Exemption%20Application%2002-14-2020.pdf
Benefits of the ATI Exemption
- Lowers property taxes for new owners.
- Encourages property ownership and investment by reducing tax burdens.
- Provides stability by preventing drastic tax increases after a property transfer.
This exemption is a valuable tool for protecting homeowners and businesses from sudden and significant tax hikes. Always consult your local tax assessor for specific details and assistance with the application process.