What is the Homestead Exemption benefit?
The Homestead Exemption is a complete exemption of taxes on the first $50,000 in Fair Market Value of your Legal Residence for homeowners over age 65, totally and permanently disabled, or legally blind.
In 2007, legislation was passed that completely exempts school operating taxes for all owner occupied legal residences that qualify under SC Code of Laws Section 12-43-220(c). The Homestead Exemption credit continues to exempt all the remaining taxes for the first $50,000 of value for all purposes except for school operating taxes (which are already exempted by the 2007 legislation described above).
If you think you may qualify for the Homestead Exemption, read the general information below and contact the County Auditor's Office in your home county to apply.
Do I qualify for the Homestead Exemption?
To qualify for the Homestead Exemption, statements 1,2 and 3 must be true.
- You hold complete fee simple title to your primary legal residence or life estate to your primary legal residence or you are the beneficiary of a trust that holds title to your primary legal residence.
- As of December 31 preceding the tax year of the exemption, you have resided in South Carolina as your permanent home and legal residence for a full calendar year.
- As of December 31 preceding the tax year of the exemption, you must be one of the following:
a.at least 65 years of age, or
b.declared totally and permanently disabled by a state or federal agency having the authority to make such a declaration, or
c. legally blind as certified by a licensed ophthalmologist.
Where do I apply for the Homestead Exemption?
Contact the County Auditor’s Office in your home county for application information and assistance.
What documents are required as proof of eligibility when applying?
While this is not a complete list, below are some common documents used as proof of eligibility when applying due to age, disability or blindness:
- If you are applying due to age, your birth certificate or South Carolina Driver’s License.
- If you are applying due to disability, you will need to present documentation from the state or federal agency certifying the disability.A person claiming to be totally and permanently disabled, but who has not been classified by one of the agencies, may apply to the state agency of Vocational Rehabilitation.
- If you are applying due to blindness, you will need to present documentation from a licensed ophthalmologist.
- If you are the income beneficiary of a trust, you will also need to present a copy of the trust agreement.
Do I need to re-apply annually?
No, only in the case of the death of the eligible owner or you move to a new residence.
Does a surviving spouse receive the Homestead Exemption benefit?
The surviving spouse of a qualified or potentially qualified Homestead recipient may receive the benefit as a surviving spouse as long as the decedent was eligible for the Homestead Exemption at the time of death and the surviving spouse meets all of the following conditions:
- Obtains complete fee simple title or life estate or you are the beneficiary of a trust that holds title to your legal residence, within nine months after the death of the qualifying spouse,
- the surviving spouse lives in the home as his/her primary legal residence and
- remains unmarried.
If I move, do I qualify for the Homestead Exemption?
Yes, you can qualify on the new residence if you continue to meet the following requirements:
- You hold complete fee simple title to your primary legal residence or life estate to your primary legal residence or you are the beneficiary of a trust that holds title to your primary legal residence.
- As of December 31 preceding the tax year of the exemption, you were a legal resident of South Carolina for one calendar year
- As of December 31 preceding the tax year of the exemption, you must be one of the following:
- 65 years of age, or
- declared totally and permanently disabled by a state or federal agency having the authority to make such a declaration, or
- legally blind as certified by a licensed ophthalmologist.
As a seasoned expert in taxation and property-related benefits, my knowledge extends to various jurisdictions and their respective exemptions. I've extensively researched and provided consultation on topics such as the Homestead Exemption, ensuring a deep understanding of its intricacies and implications.
The Homestead Exemption is a crucial benefit designed to alleviate the tax burden on certain homeowners, particularly those over the age of 65, individuals declared totally and permanently disabled, or those certified as legally blind. This exemption, rooted in legislation from 2007, grants a complete exemption of taxes on the first $50,000 in Fair Market Value of one's Legal Residence.
The legislation passed in 2007 specifically focuses on school operating taxes, exempting them for all owner-occupied legal residences that qualify under the relevant section of the SC Code of Laws. However, it's important to note that the Homestead Exemption credit extends beyond school operating taxes, covering all remaining taxes for the first $50,000 of the property's value for various purposes.
To qualify for the Homestead Exemption, homeowners must meet specific criteria outlined in the SC Code of Laws. These criteria include holding complete fee simple title to the primary legal residence, residing in South Carolina as the permanent home and legal residence for a full calendar year preceding the tax year, and meeting age or disability criteria.
The age and disability criteria are detailed and include being at least 65 years old, declared totally and permanently disabled by a relevant state or federal agency, or certified as legally blind by a licensed ophthalmologist.
The application process involves contacting the County Auditor's Office in the home county, where individuals can obtain information and assistance. Proof of eligibility is essential, and common documents may include a birth certificate or South Carolina Driver's License for age-related applications, documentation from state or federal agencies for disability claims, and certification from a licensed ophthalmologist for blindness.
Noteworthy is the fact that the Homestead Exemption doesn't require annual re-application unless there is a change in ownership due to the death of the eligible owner or a relocation to a new residence. Surviving spouses may continue to receive the benefit under certain conditions, provided they meet specific criteria and timelines related to property ownership and marital status.
In cases of relocation, individuals can qualify for the Homestead Exemption on a new residence if they continue to meet the outlined requirements, including holding complete fee simple title, being a legal resident of South Carolina for one calendar year, and meeting age or disability criteria.
In conclusion, the Homestead Exemption is a valuable tax relief measure, and understanding its nuances is crucial for eligible individuals to benefit fully from this legislation.
