SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
Page 1 of 2
H. 3841
Fiscal Impact Summary
This bill adds a new subitem to Section 12-43-220(c) stating that when a property owner dies,
property receiving the owner-occupied special assessment ratio shall continue to receive the
assessment ratio until the decedent’s estate is closed, upon recording of a deed or deed of
distribution from the estate, or after December 31 of the year following the date of death,
whichever occurs first. This provision only applies for property that is not rented and applies to
property tax years beginning after 2024. Additionally, this bill adds Section 12-37-460, which
specifies that when an owner of real property dies, the property shall continue to receive any
property tax exemption it was receiving at the time of death until the decedent’s estate is closed,
upon the recording of a deed or deed of distribution out of the estate, or after December 31 of the
year following the date of death, whichever occurs first.
This bill is expected to have a minimal impact on property taxes statewide. The estimated
average reduction of local property taxes per incident would total up to $3,626 annually. It is
unlikely that many probate cases extend beyond one year. However, the number of properties
that will maintain the special assessment ratio because of this exemption is unknown.
Explanation of Fiscal Impact
Introduced on January 30, 2025
State Expenditure
N/A
State Revenue
N/A
Local Expenditure
N/A
Local Revenue
This bill adds a new subitem to Section 12-43-220(c) stating that when a property owner dies,
property receiving the owner-occupied special assessment ratio shall continue to receive the
assessment ratio until the decedent’s estate is closed, upon recording of a deed or deed of
distribution from the estate, or after December 31 of the year following the date of death,
Bill Number: H. 3841 Introduced on Januar
y 30, 2025
Subject: Propert y Tax
Requestor: House Wa ys and Means
RFA Analyst(s): Miller
Impact Date: February 5, 2025
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
Page 2 of 2
H. 3841
whichever occurs first. This provision only applies for property that is not rented and applies to
property tax years beginning after 2024. Additionally, this bill adds Section 12-37-460, which
specifies that when an owner of real property dies, the property shall continue to receive any
property tax exemption it was receiving at the time of death until the decedent’s estate is closed,
upon the recording of a deed or deed of distribution out of the estate, or after December 31 of the
year following the date of death, whichever occurs first.
Based upon an estimated average owner-occupied property value of $229,186 and a statewide
millage rate of 352.8 for tax year 2025, this provision would on average reduce local property tax
by approximately $1,617 per incidence for the reduced assessment ratio and $1,585 for property
tax exemptions for school operations on owner-occupied property. Also, for properties that were
eligible for the homestead exemption, this provision would on average reduce local property tax
by approximately $360. Therefore, the estimated average reduction of local property taxes per
incident would total up to $3,626 annually.
We do not anticipate that most probate cases will extend long enough to prompt a county to
change the assessment ratio on a deceased person’s property from four percent to six percent, but
data are not available to determine the number of incidences in which this occurs. Additionally,
we are unsure as to how a county would determine that the property owner is deceased and
remove the special assessment ratio until the property ownership is transferred by recording of a
deed. Due to the limited information available and difficulty in determining the prevalence of
this situation occurring, this bill is expected to have a minimal impact on property taxes
statewide.