Your home's value and Charleston property tax
Let's face it, the value of your home in the Charleston real estate market has declined somewhat in the past few years. Perhaps your home has not declined as sharply as homes elsewhere in the country but almost certainly it is worth less than it was.
So what do you think the County Assessor in either Charleston, Berkeley or Dorchester County is going to say when it comes time to value your home for property tax purposes.
Property tax revenues around the country are putting an additional strain on already strained budgets. And if the assessor agrees to lower the assessed value of your home, don't be surprised to find that the tax rates are increased to minimize the revenue loss.
We are very fortunate that our property taxes in South Carolina are very reasonable especially if your home is your primary residence and you are taxed at the 4% rate. But certainly, you have the right to appeal the valuation that the assessor places on your home if you feel it is too high.
The NY Times has an excellent article on tax bill appeals from around the country. Of interest to me was the tale of a homeowner in New Jersey which has the highest property taxes in the country. A home that is languishing on the market with an asking price of $1.3 Million has an assessed value of $1.8 Million and annual taxes of $53,000.
Are you kidding me. That must be why so many residents of New Jersey are so interested in moving to the Charleston area. A rule of thumb I use for property taxes on a primary residence is 5/8 of one percent so that same home in the Charleston area would be taxed at approximately $11,250. What would you do with an extra $40,000 per year in tax savings not to mention enjoying our great weather.