South Carolina property tax (non resident)

[Sean Hoglund]

Can someone tell me if I am missing something. I thought it was simply the difference on percentage of appraised value (4% vs 6%). But the bigger issue is the nonresidents (or a 2nd house) have to pay all the school tax! For example a rental house I am interested in (in Lexington) is listed for $187,000. The previous years appraised value is $154,323. Annual property tax on it if you are a resident (and its your primary house) is $960. If it is a 2nd home or you are a nonresident, the annual tax is $4,592!!

Assuming this is correct, how are investors able to get decent cash flow out of a rental?

I used this calculator to verify the amounts : https://lex-co.sc.gov/services...

information below if from : https://realestatescorecard.co...

Real Estate Taxes

South Carolina taxes on residential real estate can vary quite a bit depending on where you live and if your home is your primary residence, or a second home or rental property. For primary residences, taxes paid equal 4% of the fair market value of the home times the local millage rate plus any other local district taxes assessed, such as for fire or police, but with a school district tax credit. Non-primary residence owners pay the local millage on a rate equal to 6% of fair market value plus district taxes and are not exempt from paying school district taxes. Resident homeowners aged 65 and older or disabled can receive a $50,000 exemption against fair market value.

In North Carolina, residential real estate is also taxed on an ad valorem basis, with each county administering assessments and collections. Rates vary by county, and are applied to 100% of assessed value (values are determined by the assessor’s office). As an example, Brunswick County’s current rate is 48.5¢ per $100 of value. On a $350K home, the tax will be $1,570. Municipalities may add additional taxes to this, so you’ll want to contact the county tax assessor-collector office to determine current rates for a specific area. Homeowners age 65 and older or the disabled who meet certain income limit requirements can receive breaks on their property taxes in North Carolina.

Transfer taxes on the purchase or sale of homes in North and South Carolina are also different. In North Carolina, the transfer tax is $1 per $500 of sale price; however, in a few counties an additional amount (up to $5/$500) can be added. South Carolina imposes a deed recording fee of $1.85 per $500 regardless of county. In both states, the transfer taxes are typically paid by the seller, but terms may vary.