After a discussion with Mr. Ed Hughes, the Beaufort County Tax Assessor, and being provided the attached copy of the tax code, real estate transactions between non-owner occupied and owner occupied home owners will have the opportunity to have the entire year the transaction occurs to be billed at the 4% ratio.  This can and will result in a huge tax savings to both parties!

As noted in Section 12-43-220 of the tax code, it is stated “if any part of the year is entitled to the 4% assessment ratio provided in this item for the entire year.”  The owner occupied homeowner must qualify as a legal resident, complete, and submit the necessary forms prior to January 15 (the first penalty date) of the following year in which the owner occupied tax ratio has been applied.

As a Realtor and member of the Hilton Head area Association of Realtors, I will be asking questions of all my closing which are between owner and non-owner occupied Buyers.  Following Section 12-43-220, both the Buyer and Seller could save money.

Should you have questions about this tax savings, please give us at the Charles Sampson Real Estate Group of Charter One Realty a call.

Charles,

See the red text below.

Ed Hughes

SECTION 12-43-220. Classifications shall be equal and uniform; particular classifications and assessment ratios; procedures for claiming certain classifications; roll-back taxes.

Except as otherwise provided, the ratio of assessment to value of property in each class shall be equal and uniform throughout the State. All property presently subject to ad valorem taxation shall be classified and assessed as follows:

(a)(1) All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half percent of the fair market value of the property.

(2) Real property owned by or leased to a manufacturer and used primarily for research and development is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property pursuant to this item (a). The term “research and development” means basic and applied research in the sciences and engineering and the design and development of prototypes and processes.

(3) Real property owned by or leased to a manufacturer and used primarily as an office building is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property pursuant to this item (a) if the office building is not located on the premises of or contiguous to the plant site of the manufacturer.

(4) Real property owned by or leased to a manufacturer and used exclusively for warehousing and wholesale distribution is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property pursuant to this item (a).

(b) All inventories of business establishments shall be taxed on an assessment equal to six percent of the fair market value of such property and all power driven farm machinery and equipment except motor vehicles registered with the Department of Motor Vehicles owned by farmers and used on agricultural lands as defined in this article shall be taxed on an assessment equal to five percent of the fair market value of such property; provided, that all other farm machinery and equipment and all livestock and poultry shall be exempt from ad valorem taxes.

(c)(1) The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, and additional dwellings located on the same property and occupied by immediate family members of the owner of the interest, are taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. For purposes of the assessment ratio allowed pursuant to this item, a residence does not qualify as a legal residence unless the residence is determined to be the domicile of the owner-applicant.

(2)(i) To qualify for the special property tax assessment ratio allowed by this item, the owner-occupant must have actually owned and occupied the residence as his legal residence and been domiciled at that address for some period during the applicable tax year. A residence which has been qualified as a legal residence for any part of the year is entitled to the four percent assessment ratio provided in this item for the entire year, for the exemption from property taxes levied for school operations pursuant to Section 12-37-251 for the entire year, and for the homestead exemption under Section 12-37-250, if otherwise eligible, for the entire year.

(ii) This item does not apply unless the owner of the property or the owner’s agent applies for the four percent assessment ratio before the first penalty date for the payment of taxes for the tax year for which the owner first claims eligibility for this assessment ratio. In the application the owner or his agent must certify to the following statement:

“Under penalty of perjury I certify that:

(A) the residence which is the subject of this application is my legal residence and where I am domiciled at the time of this application and that I do not claim to be a legal resident of a jurisdiction other than South Carolina for any purpose; and

(B) that neither I nor any other member of my household is residing in or occupying any other residence which I or any member of my immediate family has qualified for the special assessment ratio allowed by this section.”

(iii) For purposes of subitem (ii)(B) of this item, “a member of my household” means:

(A) the owner-occupant’s spouse, except when that spouse is legally separated from the owner-occupant; and

(B) any child under the age of eighteen years of the owner-occupant claimed or eligible to be claimed as a dependent on the owner-occupant’s federal income tax return.

(iv) In addition to the certification, the burden of proof for eligibility for the four percent assessment ratio is on the owner-occupant and the applicant must provide proof the assessor requires including, but not limited to:

(A) a copy of the owner-occupant’s most recently filed South Carolina individual income tax return;

(B) copies of South Carolina motor vehicle registrations for all motor vehicles registered in the name of the owner-occupant;

(C) other proof required by the assessor necessary to determine eligibility for the assessment ratio allowed by this item.

If the assessor determines the owner-occupant ineligible, the six percent property tax assessment ratio applies and the owner-occupant may appeal the classification as provided in Chapter 60 of this title.

Ed Hughes

Beaufort County Assessor

PO Box 458

Beaufort, SC 29902

843-255-2400 Voice

843-255-9404 Fax

Ehughes@bcgov.net

The July 2010 Market Update has been published by courtesy of the MLS of Hilton Head and the Hilton Head Area Association of REALTORS and the South Carolina Association of REALTORS. 

The report above is for the Hilton Head Plantation market.  In this update, it is a comparison of the 2009 and 2010 market.  Click here for the report.  The report shows some interesting facts for both buyers and sellers.  A good point for sellers is that in July, the number of new listings brought to the market is down in 2010 as compared to 2009.  Today the number of homes on the market is down by over 20%.  Another good sign for sellers is the number of days on the market has been reduced between 2009 and 2010.  For sellers, a smaller supply could create more demand.

The good news for buyers is that there is still a good selection of properties and the fact that the median sales price is down.  The report shows that in July 2009, the median price was $441,584.  In 2010 it had dropped to $385,000.  That is a 12.8% drop!

If you would like to see the Market Update for other Hilton Head Island area communities, please contact us at the Charles Sampson Real Estate Group of Charter One Realty. Angela Mullis, Frances Sampson or Charles Sampson will be glad to assist you.

Saturday, August 7, 2010, Mr. Frank Marten and academy award winning actor, Louis Gossett, Jr. presented an abbreviated showing of For Love of Liberty which is a four hour two part film production that was aired on PBS.  The hour long showing was followed by a kitchen table question and answer period between Mr. Gossett and Mr. Martin and all who were in attendance.  For Love of Liberty is the story of American Black Patriots from the Revolutionary War right up to present day.  The showing and following discussion was thoroughly enjoyed and appreciated by all in attendance.  To find out more about the movie, please go to www.ForLoveofLiberty.org.  

Mr. Gossett is in the Hilton Head Island area working on final arrangements for teaching at both SCAD and Savannah State University in Savannah, GA this fall.  Mr. Gossett remarked that he had been blessed and he wanted to give back to the youth.  Gossett and Martin worked on the production of For Love of Liberty for almost 10 years.  

After the presentation, questions and answers, Mr. Gossett did a book signing of his recent book titled An Actor and a Gentleman. 

As an added plus Savannah native Gator Rivers was in attendance with Gossett.  It just so happens that Mr. Rivers went to high school the same time I did and we both played the same sport of basketball.  Rivers just played at such a higher skill level.  Gator had a very successful high school career, three Georgia State Championships, and played at the college level.  He also played 16 years for the Harlem Globe Trotters and then coached the team for six additional years.  To see if Rivers can still handle the ball, search Gator Rivers on YouTube. 

Speaking with both Louis Gossett and Gator Rivers was a great way to spend a Saturday evening on Hilton Head Island.  Both gentlemen said they would be back and would be back and would be glad to help our youth.  Rivers even talked about some charity basketball games.

Visit www.CharlesSampson.com to see the most up to date real estate on and around Hilton Head Island.

Market Activity around Hilton Head Island, South Carolina

Charles Sampson Real Estate Group

Charter One North

843-681-3307 ext. 215

Charles@CharlesSampson.com

Not sure the “For Sale” sign meets the Town of Hilton Head Island’s sign ordinance, but it is the State.  We hope the State gets a lot of money for this property and that they will put it to good use.  We at the Charles Sampson Real Estate Group of Charter One Real Estate will have some additional information on Lot 1 Palmetto Bay Business Park off of Palmetto Bay Road, just give us a call.  To see all of the listed homes, villas, and homesites in the Hilton Head MLS, click here or go to www.CharlesSampson.com.

As you know in the South, in the words of George Gershwin, “Summertime the livin’ is easy, the fish are jumpin’ and the cotton is high.”  He could have also mentioned that it sometimes gets very warm! 

After checking on a new listing, 63 Old Fort Drive, I was leaving the plantation and saw how the Kids Camp staff answered the heat.  With the help of Station # 5 of the Hilton Head Fire Department located in their new facilities just outside the Plantation main entrance, the Kids Camp had a lot of cool fun!  My only regret was I am not a kid and could not play in the water.

Hilton Head Plantation is truly a great place to live with all of the activities it offers and today real estate opportunities make NOW a great time to buy and move here! 

For real estate questions about Hilton Head Plantation, please check out our website CharlesSampson.com.

Having lived on Hilton Head since 1972, Frances and I have had the good fortune have viewed many of the Hilton Head Island 4^th of July shows.  I can remember back to the 1970’s when it was the responsibility of the Jaycees to go out and collect the $6,000 – $8,000 it took to put the show on.  There was only one show and it was held on the beach at Coligny.  The local firemen ran the show.  One year some of the Jaycees and me volunteered to help.  Our job was to take the shell, run out and put it in a canister with the fuse exposed, and then run back behind the dunes.  The firemen would then come behind us and light the fuse.  This process went on for 20+ minutes.  This was probably not the smartest thing I have ever done.  One year on the beach there were heavy rains and the show was completed in less than five minutes!  Disappointing, but exciting all the same. 

On another occasion, one year the show off of Hilton Head Plantation had a shell explode on the barge.  Needless to say, some of the crew had to jump into the water to escape the fire.  Another exciting moment in the 4^th of July activities registered in Hilton Head Island history!

All in all, the celebration of the 4^th of July on Hilton Head Island has provided many fond memories from watching with my parents in the 1960’s and 1970’s and now with my children, grandchildren, and friends.

It is about time for the Hilton Head Real Estate market to get as exciting and as hot as fireworks!  If you are not already a Hilton Head Island property owner, give us a call so we can help make sure you are here for the 4^th of July in 2011.  To check out all the real estate opportunities, please check out one of our web sites, CharlesSampson.com

FOXNews.com – Best Beaches

If you would like to have a more permanent residence on or near this # 1 destination, do not hesitate to give us a call or view our website at www.CharlesSampson.com.  We look forward to assiting you with your real estate needs on and around Hilton Head Island.

The Charles Sampson Real Estate Group
Charter One North Realty
1-800-267-3285 ext. 215
www.CharlesSampson.com