The Property Tax Exemption for Investors - ATI Exemption

what is the South carolina ATI exemption?

You may be entitled to receive a property tax exemption for property that is taxed at the 6% assessment ratio prior to and after a transfer. This exemption is for the year following a sale and for up to four years after the sale (“ATI Exemption”).  South Carolina Code Ann. § 12-37-3135 provides that where (1) a property is taxed at the 6% assessment ratio prior to a transfer; (2) the property remains taxed at the 6% assessment ratio after the transaction; and (3) the purchase price exceeds the value at which the property was being taxed prior to the transfer, then an exemption of up to 25% of the new valuation may be applied for up to 5 years after the sale. 

Note that not all properties will qualify. Property that is value and assessed by the South Carolina Department of Revenue, such as manufacturing property, utility property, or other types of property used in certain large industries may not qualify. Always check with the County Assessor’s office.

Example of savings:

If you purchase an investment property taxed at 6% for $1,200,000 with a property tax bill based on an $800,000 valuation, the ATI exemption would reduce the valuation by 25% ($1,200,000 x .75 = $900,000 valuation). Your new taxable value would be the greater of the previous valuation ($800,000) or the ATI exemption ($900,000). In this case, your new valuation would be $900,000. This is $300,000 lower than if you had not applied for the exemption.

How to Apply:

You should apply for the ATI Exemption with the County Assessor’s office by January 30th of the year following the transfer. If you do not apply prior to this date, you may still qualify for remaining years.

Information updated as of December 20, 2024.  Always check with your county tax assessor for the most updated rules governing your situation or contact us for specific legal advice. You should consult with your CPA for any tax guidance you need.