Assessable Transfer of Interest (ATI)
REASSESSMENT OF REAL PROPERTY, POINT OF SALE AND WHAT THIS MEANS TO YOU!
Every five years, each County in South Carolina is required by State Law to reassess all property within the County’s jurisdiction. During a countywide reassessment, all real property within the county is reappraised at its current market value as of its reassessment date. New legislation requires that in the year in which a reassessment is implemented, each parcel of real property be adjusted for improvements and losses, and not increase more than 15 percent every five years unless an assessable transfer of interest occurs. The last reassessment in Anderson County was a 2011 reassessment (implemented in 2013) and the next is 2016 (to be implemented in 2017 or 2018).
THE SOUTH CAROLINA REAL PROPERTY VALUATION REFORM ACT (ACT 388) WAS PASSED BY THE STATE LEGISLATURE IN 2006, THIS LEGISLATION INCLUDES THE FOLLOWING CHANGES:
• If real property has not been transferred or been improved, the increase in the fair market value of real property due to the reassessment is limited to fifteen percent (15%) of the prior year’s fair market value. This is also known as the 15% Cap on reassessment.
• If there has been an Assessable Transfer of Interest (ATI) (a term defined by State Law) during any given year after 2006, then the 15% Cap will not apply to that real property.
o What is an ATI (Assessable Transfer of Interest)?
When one party transfers the ownership of real property to another party, that transfer is usually an ATI. Therefore, with some limited exceptions, most real property transfers are considered ATI’s. The limited exceptions are determined by state law and are listed at S.C. Code Ann. §12-37-3150 (1976, as amended). See Web Link below.
o What does this mean?
Most real property that is purchased or otherwise transferred during 2015 will be reassessed for 2016 at full fair market value, without the 15% Cap.
Real property that is purchased or otherwise acquired in the future, with some limited exceptions, will be assessed at full fair market value in the tax year following the purchase or acquisition.
• How will property owners be notified?
If you are an owner of an ATI Property Anderson County will mail you a Notice of Classification, Appraisal & Assessment of Real Estate showing the ATI value for 2015 with the reason for change being “Assessable Transfer of Interest”, as required by State Law. If you are an owner of a Non-ATI Property Anderson County will mail you a Notice of Classification, Appraisal & Assessment of Real Estate. Most of these notices will show the reason for the notice as "Countywide Reassessment.” Depending on whether any other changes were made to the property during the prior year, the Notice may reference a different code for the reassessment on the property.
For example, if a building permit was issued for the real property or if there was a decrease or an increase in the size of the property, the Notice will reference the appropriate code.
Questions may be directed to the Anderson County Assessor’s Office at (864) 260-4028.
FOR MORE INFORMATION ON ACT 388 AND WHAT IS AND WHAT IS NOT DETERMINED TO BE AN ATI, YOU MAY VISIT: http://www.scstatehouse.net/code/t12c037.htm (Section 12-37-3150)
South Carolina state law requires that each county within the state conduct a countywide reassessment every five years. A one-year extension is allowed by county ordinance. During a countywide reassessment, all real property within the county is reappraised at its current market value as of its reassessment date. New legislation requires that in the year in which a reassessment is implemented, each parcel of real property be adjusted for improvements and losses, and not increase more than 15 percent every five years unless an assessable transfer of interest occurs. Anderson County is currently scheduled to implement its next reassessment in tax year 2016 (to be implemented in either 2017 or 2018). Only real property values are affected by reassessment. Values of personal property such as cars, boats and motorcycles are kept current through annual updates by the Department of Revenue.