How are Property Taxes Calculated?

How are property taxes calculated and what to do if you are over assessed

I get questions almost every day about what a buyer can expect to pay in annual property taxes for their real estate purchase in Myrtle Beach. The first piece of information I need in order to answer that is whether the buyer will be purchasing the property as a Primary Residence or Second Home/Investment.

If a buyer is buying their primary residence their tax rate will be 4% of the Horry County assessed value. If it's a Second Home or an Investment Property, it is 6% of the assessed value.

Here is an example that I started to hand out to buyers. (You can also find examples like this on the Horry County website. I have included the link below)

Tax Rate Example:

$125,000       Fair market value
       x 4%       Assessment ratio
    $5,000       Assessed value
   x .2093       County millage rate
$1046.50       Taxes
-   596.50       Tax credit
  $450.00       Tax Due 

$125,000       Fair market value
       x 6%       Assessment ratio
    $7,500       Assessed value
   x .2093       County millage rate
$1569.75      Taxes Due

Big difference huh?

Now what happens if you have purchased your new home you plan on using as your Primary Residence but you look at your tax bill and realize you are being taxed at the 6% rate? When I first bought my home in 2005 I didn't realize I was not getting the 4% rate and my taxes were much higher than I planned for. Here is a link to the application. just fill it out and read page 2 to be sure you are eligible.
LEGAL RESIDENCE (4%) SPECIAL ASSESSMENT APPLICATION

For more information, see the link below for the Horry County assessment department.

http://www.horrycounty.org/depts/finance/assessor/guide.asp
 
Chris Kavanagh - Sales Associate
Watermark Real Estate Group
843-655-0711 (cell)
843-353-1990 (fax)
ckavanagh@watermarkagents.com
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PS. Referrals are always appreciated. Ask your friends and family to visit chriskavanaghmb.com or give me a call anytime.