ATI Exemption in South Carolina for Second Homes & Investments

January 21, 2025

ATI Exemption: Save on Property Taxes in South Carolina

If you’ve recently purchased property in South Carolina, you might be eligible for the ATI Exemption (Assessable Transfer of Interest). This exemption can significantly lower your property taxes by reducing the taxable value of qualifying properties by up to 25%. For property owners, this is a valuable opportunity to save money—but understanding how it works and the filing requirements is key.

What is the ATI Exemption?

In South Carolina, a property’s taxable value is reassessed at market value when it changes ownership. This often results in higher property taxes for the new owner. The ATI Exemption, introduced in 2007, offers relief by reducing the taxable value of certain properties, helping owners save significantly on their tax bills.

Who Qualifies for the ATI Exemption?

The exemption applies to:

Second Homes – Properties such as vacation homes or seasonal residences that are not used as the owner’s primary residence.
Commercial Properties – Real estate used for business purposes, including rental properties taxed at the 6% rate.
Vacation Rentals – Homes that are not owner-occupied and do not qualify for the lower 4% assessment rate for primary residences.
Other 6% Properties – Any property taxed at the standard 6% assessment ratio for non-primary residences.

This exemption is not automatic. To be eligible, buyers must have purchased the property in 2024. Property owners must file an application with the appropriate county assessor’s office.

Filing Deadline for the ATI Exemption

To claim the ATI Exemption, you must submit your application by January 31 of the year following your property purchase. Missing this deadline means you’ll need to wait until the next tax year to benefit from the exemption.

How Does the Exemption Work?

If approved, the taxable value of your property is reduced. For example, a property purchased at $300,000 could have its taxable value reduced by up to $75,000. This lower value translates to a smaller tax bill, providing significant annual savings.

Steps to Apply for the ATI Exemption

Contact Your County Assessor’s Office – Obtain the ATI Exemption application form and instructions specific to your location.
Complete the Application – Provide all necessary details, including documentation of the property purchase.
Submit Your Application by January 31 – Ensure the form is filed by the deadline to avoid delays in receiving the exemption.

Why Apply for the ATI Exemption?

The ATI Exemption can make a significant difference in your annual tax expenses, whether you’re a homeowner or an investor. With potential savings of hundreds or even thousands of dollars, filing the application is a straightforward way to reduce your financial burden. Don’t miss out on this opportunity to save—be sure to file your application on time!