| The
property tax was created in South Carolina
in 1915 and until the late 1920s was the major
source for state and local revenue. Today,
property tax represents about 20 percent of
all state and local taxes. It continues to
be a main source of revenue for our public
schools.
Why Do We Pay
Property Tax?
Property tax is collected by local governments
to provide for the many services most of
us take for granted. Schools, police and
fire protection, trash disposal, medical
services, arts and youth recreation are
all possible because of revenue from the
property tax.
How a Tax Bill
is Calculated
The property tax is
determined by multiplying the fair market
value by the assessment ratio by the millage
rate. For example, the tax on your home
is determined in this way:
$120,000 Fair market value
x 6% Assessment ratio
= 7,200 Assessed value
x .415 Millage rate (415 mills)
= $2,988 Taxes due
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The
Barnwell County Assessor's Office was created
in 1976. The primary function of the County
Assessor is to report to the County auditor
the Fair Market Value and Assessed Value of
all Real Estate not appraised by the Department
of Revenue. The Assessor does not create value.
People make value by their transactions in
the market place. The Assessor simply has
the legal responsibility to interpret these
transactions and appraise your property accordingly.
Another vital function of the Assessor's Office
is to conduct property value reassessments
every five years.
Why Reassessment
and Fair Market Value is so Important?
Once the Assessor assigns a value to your
property the value from which your tax bill
is calculated may not change for as long as
five years. The actual market value of property
will continue to evolve but not necessarily
at the same rate. Over time the difference
in the assessor's appraised value and the
actual market value become so large that inequities
occur that result in some being asked to pay
more of their fair share and others less.
In an effort to balance these inequalities,
the assessor conducts county wide reassessments
every five years. During this time, the assessor
reappraises all real estate in light of the
present day fair market value. Fair taxation
is not possible unless correct appraisals
of property are made in light of present value,
not what it may have been worth in past years.
This is the most important function of a continuing
assessment system. |
Much like a private fee appraiser for estates,
banks, and other financial institutions, the
assessor and staff appraisers are licensed
and certified by the State of South Carolina
to perform appraisal work. Consistent with
state standards, the assessor may employ one
or more of the following approaches to value
your property.
Sales Approach
By Comparison
- This method compares property to others
which have sold recently. These prices are
analyzed to determine if the sales were
accurate. One property may have sold for
more than it is really worth because the
buyer was in a hurry and was willing to
pay any price. Another may have sold for
less money than it was actually worth because
the owner needed cash quickly.
When using the sales comparison approach,
the assessor analyzes many sales to arrive
at a fair valuation of your property. Size,
quality, condition, location and time of sale
are important facts which are considered.
The sales comparison approach usually is the
most reliable way of determining value of
residential property.
Cost Approach
- A second way to value property is based
on how much money it would take, at current
material and labor costs, to replace the
property with one that is similar. If the
property is not new, the assessor must also
determine how much it has depreciated. Also,
the assessor must determine how much the
land would be worth if it was vacant.
Income Approach
- Another way to value property is
to evaluate how much income the property
would produce if it were rented as an apartment
house, a store or other sort of business.
The assessor considers what rent a property
may earn, vacancy rates, operating expenses,
maintenance costs, and the current interest
rate charged for borrowing money.
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