The Post and Courier
Monday, April 6, 2009
Charleston County plans to postpone its next property reassessment by one year, with a new target date of 2011.
County officials said the delay will allow time for the General Assembly to make up its mind about several legislative proposals that could affect the way homes, stores and other land are assessed and taxed, and the delay also will save the county money during a tough budget year.
It would cost the county about $150,000 simply to mail reassessment notices, and more staff would be needed to conduct a reassessment, which takes about two years and already is behind schedule, County Assessor Toy Glennon said.
For property owners, the delay could be good news or bad news depending on how their property's value has changed since 2003, particularly compared to other county properties.
In a reassessment, properties that have gained the most value generally end up with higher tax bills, while those that have gained less value relative to other properties get lower tax bills.
County Councilman Paul Thurmond said last week that some property owners might think the county is denying them a decrease in taxes.
"What I'm worried about is people thinking their house is worth less than it was five years ago, and that we're cheating them," he said.
Glennon said people might well believe that, but they would be mistaken. She said a greater source of trouble could come if people get assessment notices next summer showing that their property values increased, and they don't understand why.
"If you mail reassessment notices in the summer of 2010, people will not believe their values have gone up, and there will be a backlash," she said.
Glennon explained that the property values now used for taxes, which were set during the 2005 reassessment, represent what properties were believed to be worth in December 2003.
Even though Charleston County property values have fallen recently, they are, with some condominiums being a notable exception, still about 25 percent above their values in 2003.
Another exception is property that was sold after the statewide property tax reform of 2006 took effect. Under that law, properties that are sold get reassessed at full current values, immediately resulting in higher tax bills.
Otherwise, properties are reassessed every five years, with state law allowing for a possible one-year delay.
The 2006 law also established caps on how much the value of a property can be raised during a reassessment. The cap was set at 15 percent, well below the rate of appreciation typically seen with properties over a five-year period.
The cap helps the owners of properties that have gained the most value since the last reassessment, while shifting some of the tax burden to properties that have appreciated less quickly.
County Council voted unanimously Thursday to delay the reassessment and is expected to affirm that decision Tuesday. If it does, then the next reassessment would take place in 2011 and would be reflected in property tax bills that fall.
Reach David Slade at dslade@postandcourier.com or 937-5552.
If you have questions regarding real estate in the Greater Charleston area or even questions about the status of the current tax reform pending in the General Assembly, please feel free to call Owen at 843.224.5398 or e-mail him directly at Owen@OwenTyler.com.
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