Understanding South Carolina's Section 12-37-3135: ATI Fair Market Value Exemption from Property Tax
An Essential Guide for Real Estate Investors
At ProperXit, we strive to maximize the returns on our investments by leveraging every available advantage. One such advantage, often overlooked by many real estate investors in South Carolina, is the ATI (Assessable Transfer of Interest) fair market value exemption from property tax under Section 12-37-3135. This article aims to shed light on this valuable, yet little-known, law and how it benefits property investors.
What is Section 12-37-3135?
South Carolina's Section 12-37-3135 provides a property tax exemption aimed at mitigating significant tax increases following a property’s assessable transfer of interest (ATI). Here’s a detailed breakdown of what this law entails and how it can benefit you:
ATI Fair Market Value:
Defined as the fair market value of a property and its improvements, determined by appraisal at the time of the property's last assessable transfer of interest.
Exemption Value:
When a property, assessed at a six percent ratio, undergoes an ATI, it qualifies for an exemption of 25% off its ATI fair market value. This exemption helps reduce the potential tax burden following a reassessment.
Notification Requirement:
To claim this exemption, property owners or their agents must notify the county assessor by January 31st of the tax year in which they first wish to apply for the exemption. This notification is only required once as long as the property remains subject to the six percent assessment ratio.
Practical Implications for Investors
This law is particularly beneficial for investors purchasing properties expected to undergo significant value increases upon reassessment. By reducing the taxable value by 25%, investors can achieve substantial tax savings, thereby enhancing their return on investment.
ProperXit’s Commitment
At ProperXit, we proactively file for the ATI fair market value exemption for all our properties. We believe in maximizing our investors’ returns through meticulous attention to all available legal benefits. By taking advantage of Section 12-37-3135, we ensure our properties are taxed efficiently, allowing us to pass on these savings to our investors.
Why This Matters
Despite its benefits, Section 12-37-3135 remains underutilized and relatively unknown among South Carolina investors. By informing our clients and the broader investment community about this exemption, we aim to help more investors capitalize on this opportunity.
Conclusion
Understanding and leveraging Section 12-37-3135 can significantly impact your investment's financial health. At ProperXit, we remain committed to ensuring our investors benefit from every available advantage. If you’re investing in South Carolina real estate, consider the substantial benefits this exemption offers. For more detailed guidance and assistance, feel free to contact us at ProperXit.
For further reading, you can refer to the South Carolina Code of Laws on Justia or Casetext.
By staying informed and proactive, we can navigate the complexities of real estate investment together, ensuring maximum profitability and compliance.
