South Carolina: A property tax exemption for certain disabled homeowners, and former POWs

September 25, 2016

Check with your state and Local to see if they offers tax exemptions

There are nearly 20,000 homeowners in South Carolina whose houses are exempt from property tax.

The exemptions are unrelated to income or ability to pay, and are granted by the state Department of Revenue through sections of the tax code that benefit people who are totally disabled, those who were once prisoners of war, and the surviving spouses of persons who qualified or would have qualified.

This is not a tax break you want to qualify for, given the requirements, but it’s one that lots of people likely don’t know about. The standards for “total disability” vary, depending on the exemption, but being considered disabled for Social Security purposes does not count.

Most of the property tax exemptions are tailored to veterans, firefighters and laws enforcement officers. One is available to anyone with paraplegia (paralysis of the lower limbs), hemiplegia (paralysis of half the body), or similar ambulatory difficulties due to Parkinson’s disease, Amyotrophic Lateral Sclerosis (Lou Gehrig’s disease) or multiple sclerosis.

For example, if a home owner is stricken by Parkinson’s or ALS and they eventually have “the same ambulatory difficulties as a paraplegic or hemiplegic” then they can get a total exemption from property taxes on their home. And if they are married, that exemption carries over to their surviving spouse for as long as the spouse is an owner of the home and continues to live there and does not remarry.

It doesn’t matter if the house is a modest place, or a multimillion-dollar waterfront home.

There are several exemptions, each with slightly different rules. However, each must be applied for through the state DOR (not the county assessor or auditor), using form PT-401-I, “property tax exemption for individuals.”

In each case, a deed and the form showing that the home is owner-occupied (and receives the 4 percent county assessment ratio) are required. In some cases, the deed can be held by a trust.

The exemptions for homeowners, as listed by DOR, are:

For a veteran who is permanently and totally disabled as a result of a service-connected disability. This exemption is allowed to the surviving spouse who owned the house in fee or for life or jointly with the now deceased spouse, if the spouse remains unmarried, resides in the house, and owned the house in fee or for life. Importantly, the surviving spouse can apply for the exemption after the death of the qualifying veteran.

To apply, provide copies of a certificate from the Veterans Administration or local County Service Officer certifying total and permanent service connected disability with the effective date. (VA Rating decisions and e-Benefits letters do not meet requirements of law.)

For a former law enforcement officer, who is permanently and totally disabled as a result of a law enforcement service connected disability in South Carolina. The officer must have worked for the state or one of its political subdivisions. The surviving spouse rule is the same as in the exemption for veterans.

To apply, provide a final order issued by the Workers’ Compensation Commission of total and permanent service connected disability in South Carolina with the effective date.

For a former firefighter, including a volunteer firefighter, who is permanently and totally disabled as a result of a firefighting service connected disability in South Carolina. The surviving spouse rule is the same as above.

To apply, provide a statement from the chief of the fire department, and physician, of the total and permanent service connected disability in South Carolina with the effective date.

For a paraplegic or hemiplegic person, or a person with a similar disability due to Parkinson’s disease, multiple sclerosis, or ALS. The surviving spouse rule is the same as above.

To apply, provide copies of a physician’s statement certifying paraplegic, hemiplegic or quadriplegic condition, with effective date. For those with Parkinson’s, MS, or ALS, provide a physician’s statement on the physician’s letterhead reflecting the effective date they were classified as a paraplegic or hemiplegic person.

For a Medal of Honor recipient or certain prisoners of war. The prisoner of war exemption only applies to someone who was a prisoner during World War I, World War II, the Korean War or the Vietnam War. The Medal of Honor exemption applies currently to just one person in South Carolina, and he has claimed the benefit.

Former POWs can apply by providing a certificate from the VA or local County Service.

Questions? You can review frequently asked questions online at dor.sc.gov/tax/exempt-property/faq, email Property.Exemptions@dor.sc.gov, or call 803-898-5700.

http://www.postandcourier.com/20160925/160929801/a-property-tax-exemption-for-certain-disabled-homeowners-and-former-pows