"Rental property" refers to any real property that is rented out at some point during the year. By South Carolina law, the value of all furnishings and appliances included within a rental property must be reported on a return for taxation. Furnishings and appliances can include but are not limited to refrigerators, stoves, washers, dryers, couches, microwaves, linens, beds, tables, or other tangible personal property that are provided to a tenant. You will subsequently receive a Rental Personal Property Tax Bill with your Real Property Tax Bill each fall. The rental bill is not paid through escrow.
By law, every person who owns real property in South Carolina that is listed at the 6% non-residence or secondary residence rate must make a return with the Auditor’s Office stating whether or not the property is rental. Additionally, any real property taxed at 4% or 6% that is rented must file a return. This return is called a "Return on 6% Assessed Real Property or Rental Residential Property" form. If the property is rented, the value of any personal property to include furnishings and appliances must be included on the return. Rental bills are taxed at 10.5%.
As a courtesy, our office mails out rental filing postcard reminder notices at the start of the year to all taxpayers who own a residence in Beaufort County being taxed at 6%. These reminders are mailed to the same address recorded on the real property account.
Rental returns must be filed between January 1 through April 30 of each tax year so that the tax rolls can be prepared, and the bill is mailed out later that same year in the fall. Any late returns will be charged a 10% late filing penalty on the value provided.
If a return is not made or we do not receive a return, the Auditor must make a return per §12-37-760. This statutory return filed by the Auditor will assume that the residence is a fully furnished rental unit.
Relevant articles:
Need to fill out the annual Rental Return
Received a Rental Inquiry and/or Reminder postcard in the mail
Active duty military exemption benefits for Rental tax bills
When completing the annual return form for your rental property, you may note the total original cost, total depreciation, and total current value of any furnishings and appliances provided. If you do not know these values or do not have an exact amount, you may estimate the total current value by using a replacement or fair market value. Regardless of the age or condition of the contents, the total original cost of the provided items cannot depreciate more than 90% when reporting their total current value.
If you need to change a value or if you did not file an original return, you may file an amended return on or before the last day the bill can be paid timely to avoid further penalties. Alternatively, if the bill is paid and an amended return is submitted, a refund for any overpayment will be processed. The refund will be mailed as a check from the Beaufort County Treasurer's office after 4-6 weeks to the address they have on file. Address changes must also be requested through their office.
If you report that the property is a rental but is rented without furnishings and appliances, the Auditor’s office reserves the right to send investigators to the property and verify. If you purchase the property furnished, you must report the value of any appliances and/or furnishings provided to tenants even if you did not originally purchase them. Estimates for values are accepted.
Additional relevant articles:
Received a Rental tax bill, but the property is not rented
Submitted a Rental Return, but there was an error on the submission
Received a Rental tax bill and the property is rented, but the value is incorrect
If you do not rent your property because it is your legal residence, contact the Assessor’s office to apply for the 4% legal residence rate. A home at the 4% legal residence rate can be rented for 72 days before the 4% is forfeited. However, any property that is rented for any length of time is subject to rental personal property taxes regardless of the 4%. See the article "The property is my primary residence and is also rented" for more information.
If you do not rent your home but it is not your legal residence, you must submit the Rental Return Form every year. If a return is not submitted, a statutory Rental Personal Property Tax bill will be generated per state law assuming that the property is rented fully furnished.