How much will Taxes increase after purchase

[Account Closed]

Before I buy a property I want to know how much my taxes will increase after we agree on a purchase price.  I know this means a lot especially when you move into commercial real estate, anyone have or know of a good way to find out how much taxes will increase after you buy?

[Troy Gandee]

Actually, I think I just realized what @Jonathan Twombly is referring to. I thought he was referring to an annual tax rate similar to the 4% assessment ration of an owner-occupied property for non-resident real property.

I think what Jonathan is referring to is a 2011 law called something like the ATI law. What this says is that upon the transfer of interest of a property (new sale, or point of sale as it's usually called), if the new sales price of the property is significantly higher than the assessed value, then you can apply for a 25% reduction of the new assessed value per the market price. Ex. If the property was assessed at 50k and you bought it for 100k, then you can apply for a reduction of the assessed value to 75k, which will carry on from point of sale forward until the next reassessment. But, if the 25% reduction were to be lower than the previous assessed value, they will still take the original assessed value as it is higher. I've never needed to do it because I usually buy pretty beat up properties below market value and I've never personally bought a true commercial building that has experienced that kind of appreciation as to need this. There's also a law in SC that does now allow the assessor to assess a property more than 15% above the previous assessment. I've never seen the appeal form, but I have a closing today and I'll ask my attorney if he has a copy.