Now that 2024 has ended, we would like to remind you of the potential 25% exemption from property taxes (under S.C. Code Sect. 12-37-3135) on commercial real estate newly acquired during 2024. If you purchased commercial real estate in 2024, this may benefit you.The deadline to apply for 2024 Assessable Transfer of Interest exemptions is January 30, 2025.

Basically, the law allows a purchaser of commercial real estate, whether it is raw land or income producing property, to reduce the Assessable Transfer of Interest or ATI assessed value that is based on the purchase price. This assessed value exemption can be as much as 25% of the change in taxable value of the property. Without applying for the exemption, the assessed value of commercial real estate will normally be increased to the full purchase price of a property.  The 25% reduction in property tax assessed value would impact future reassessments for your property as well, so this is a long term benefit.  This exemption is not widely publicized, so it is often missed by new commercial property owners.

The SC DOR takes the position that the application for exemption must be filed in the first year of eligibility or else the exemption is lost for future years. Some recent court cases have allowed a late ATI exemption application in certain limited situations, but this issue is still being litigated.

The ATI exemption application must be filed with the county where the property is located, by January 30, 2025.

WebsterRogers is here to help!

If you acquired property during 2024 we need to discuss this with you before you would send in your annual income tax information. If this situation applies to you, please contact us at your earliest convenience to assist with this application.