The new property values will be mailed to residents today and available on the county's Web site while the county prepares contingency plans for a potential cap on tax values awaiting the governor's approval. The reassessed values, the first since 1998, will be used with a yet-undetermined tax rate to calculate fall property tax bills.
Because state law prevents the county from collecting more in a reassessment year than it did the previous year, County Council is expected to lower the tax rate at an Aug. 23 meeting, said Tom Henrikson, the county's controller.
"The only increases (in tax revenue) are because of growth that has occurred in the last calendar year," he said.
Collecting the new reassessed values highlights the county's continued growth, with total property values expected to reach $26 billion this year compared with values before reassessment of about $15 billion.
Bob Everett, deputy assessor in charge of reassessment, said a growing population may be driving spikes in property value in areas like Seabrook and the northern end of Lady's Island.
"That's waterfront that wasn't desirable 10 years ago because it was so far out of town, but it's not anymore," he said.
Any increase in property values may be tempered by legislation approved by the General Assembly that would cap increases at 20 percent. That cap would mean a home that previously was assessed at $100,000 with a reassessed market value of $200,000 would only be taxed at $120,000.
Supporters have said a property value cap would limit tax spikes for longtime homeowners. Opponents have said the cap shifts the tax burden from owners of expensive properties to middle- or low-valued properties.
Gov. Mark Sanford has said he's still reviewing the legislation.
County Administrator Gary Kubic said the county is preparing a parallel taxing system if the cap is approved between now and the first few weeks after tax bills roll out in October. Any further delays and the county may be mired in refund requests and uncertainty over how to bill again the majority of property owners who didn't pay enough.
"The major problem we are anticipating is the impact it will have on our ability to have sufficient cash flow," Kubic said.
But a state Supreme Court action may spoil cap plans as opponents to a 15 percent Charleston County cap are awaiting a hearing on their challenge.
In a recommendation requested by the state's high court last month, Circuit Court Judge Victor Rawl stated the Charleston cap "unfairly distributes the burdens and benefits of tax relief without a rational basis."
Beaufort County delayed its state-mandated five-year reassessment last year to consider its own 15 percent cap, but County Council abandoned the idea earlier this year.
Though residents have 90 days to dispute the assessed value of their property, Everett said taxpayers should not wait until they get their tax bills in October to file a claim.
"The only thing they can appeal is the value of the property, not their tax bill," he said.
Reassessments on about 4,000 commercial properties in the county were contracted out and have not been completed.
Expected to be mailed out in September, increases in commercial values aren't expected to be as dramatic as residential real estate because determining factors, such as recent sale prices on similar commercial properties, aren't expected to change drastically, Everett said.
"Locations are significant," he said, noting four smaller parcels on S.C. 170 have increased in value because they sit in front of the new Lowe's Home Improvement Warehouse in Beaufort.