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

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.