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 that 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?
Contact Your County Assessor’s Office or visit their website. Here a few examples:

Many counties, like Charleston, make it difficult to find and learn more about this tax break.

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.

For reference, here is the statutory language:

SECTION 12-37-3135. ATI fair market value exemption from property tax; requirements.

(A) As used in this section:

(1) “ATI fair market value” means the fair market value of a parcel of real property and any improvements thereon as determined by appraisal at the time the parcel last underwent an assessable transfer of interest.

(2) “Current fair market value” means the fair market value of a parcel of real property as reflected on the books of the property tax assessor for the current property tax year.

(3) “Exemption value” means the ATI fair market value when reduced by the exemption allowed by this section.

(4) “Fair market value” means the fair market value of a parcel of real property and any improvements thereon as determined by the property tax assessor by an initial appraisal, by an appraisal at the time the parcel undergoes an assessable transfer of interest, and as periodically reappraised pursuant to Section 12-43-217.

(5) “Property tax value” means fair market value as it may be adjusted downward to reflect the limit imposed pursuant to Section 12-37-3140(B).

(B)(1) When a parcel of real property and any improvements thereon subject to the six percent assessment ratio provided pursuant to Section 12-43-220(e) and which is currently subject to property tax undergoes an assessable transfer of interest after 2010, there is allowed an exemption from property tax of an amount of the ATI fair market value of the parcel as determined in the manner provided in item (2) of this subsection. Calculation of property tax value for such parcels is based on exemption value. The exemption allowed by this section applies at the time the ATI fair market value first applies.

(2)(a) The exemption allowed by this section is an amount equal to twenty-five percent of ATI fair market value of the parcel. However, no exemption value calculated pursuant to this section may be less than current fair market value of the parcel.

(b) If the ATI fair market value of the parcel is less than the current fair market value, the exemption otherwise allowed pursuant to this section does not apply and the ATI fair market value applies as provided pursuant to Section 12-37-3140(A)(1)(b).

(C) The exemption allowed in this section does not apply unless the owner of the property, or the owner’s agent, notifies the county assessor that the property will be subject to the six percent assessment ratio provided pursuant to Section 12-43-220(e) before January thirty-first for the tax year for which the owner first claims eligibility for the exemption. No further notifications are necessary from the current owner while the property remains subject to the six percent assessment ratio.