South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 37 - PROPERTY TAX REGULATIONS › Section 117-1720.2 - General Requirements for Ratio Study

Current through Register Vol. 48, No. 6, June 28, 2024
A. In accordance with Section
			 12-43-250
			 of the South Carolina Code of Laws, the Department of Revenue shall annually
			 make a ratio study of all the counties in the State to determine if the level
			 of appraisal and/or assessment and the degree of equity has been achieved as
			 required by law. This information shall be obtained initially from the Assessor
			 and field checked when necessary by personnel from the department. The sales
			 that best reflect market value sales will be used to make an analysis to
			 determine the level of appraisal and/or assessment and the degree of equity. If
			 a county has a median appraisal level for all property as a whole or any class
			 higher than 105% or lower than 80% of fair market value it shall be deemed
			 unacceptable by the department. If the index of inequality reaches a rating
			 higher than 15% for the county as a whole or any class of property, it shall be
			 deemed unacceptable by the department. However, in the classification of
			 agricultural when there is an insufficient number of market sales to determine
			 the level of appraisal or the index of inequality, the department shall make a
			 determination as to whether or not reassessment is required.
B. Average Appraisal. The median shall be the
			 criteria to determine the level of appraisal or assessment for all property as
			 a whole or for any class.
C. Index
			 of Appraisal or Assessment Inequality. The index of inequality is defined as:
			 one-half the difference between the ratio of the third and first quartile
			 values over the median ratio.
1/2 (Q3 - Q1)
=
Median
The answer when computed is registered as a percent. Whenever
				this formula is used on all property as a whole or any class with a rating
				above 15%, it shall be deemed unacceptable by the department.
D. Appraisal in Lieu of Sales. Whenever a
			 county lacks sufficient market value sales to make an accurate ratio study for
			 the county as a whole or any class, the department shall make appraisals of
			 real property which shall be used in lieu of sales in ascertaining level of
			 assessment and the degree of equity.
E. Valuation of Agricultural Property Based
			 on Use. The department shall make studies to determine if agricultural real
			 property is being appraised based on use as prescribed by law. The department
			 shall make necessary studies to estimate what the market value of agricultural
			 real property is when the highest and best use is for agricultural
			 purposes.
F. Counties' Failure to
			 Meet the Requirements of the Law. Ratio studies will be made from market value
			 sales taking place from January 1 through December 31 of each year and the
			 county shall be notified of the findings of the ratio study on or before June
			 first.
When a county fails to meet the standards herein prescribed,
				the department shall notify the county assessor and governing body by June
				first that the county fails to meet the standards and that a reassessment
				program must be immediately initiated which must be completed within two (2)
				years from the date of the notice or unless a one-year extension is granted
				within the two (2) year period because of extreme circumstances. All
				corrections in market sales reported for the preceding calendar year must be
				made to the department on or before March 21st of the year in which the
				reassessment program is to be implemented.
A failure to implement an acceptable reassessment program by
				June first of the year in which implementation of the program is required will
				mandate an order to the county auditor to abate or reduce the assessed value of
				all other classes of property at the level of assessment of the real property
				included in the program.