It’s a truism that’s almost always said with grim resignation: nothing is certain but death and taxes.
While no one likes paying taxes, the truth is taxes generally go to provide services that keep society functioning, and nowhere is this more true than at the local level.
Home rule
When the S.C. General Assembly established home rule in the 1970s and defined the role and structure of county government, it also established how county governments would pay for operations and the services provided to citizens.
The majority of local government funding in the Palmetto State comes from ad valorem property taxes on real property — from homes, land, commercial and industrial properties to automobiles, watercraft and recreational vehicles.
Property taxes on these things help pay for public schools, fire protection, and water and sewer services, along with county and municipal operations that cover things like public safety and building-code enforcement.
Under state law, county councils are given the responsibility for setting the millage rate that funds county operations and debt service. The millage rate is the number of dollars assessed in property tax per $1,000 of valuation.
County councils are also responsible for approving the millage rates of most fire service areas and special-purpose districts, most of which have elected or appointed boards that oversee operations, including approving a budget and recommended millage rate.
Under state law, county school districts also have authority to levy property taxes, and the boards governing those districts are responsible for setting the millage rates that support schools.
How property taxes are determined
Taxes on real estate generate the lion’s share of property tax revenue, and Section 1, Article X of the state constitution defines the ratios at which different types of property are assessed. For example:
- 4% for owner-occupied homes
- 6% for commercial property and non-primary residences
- 10.5% for manufacturing property
The assessment ratio determines how much of a property’s assessed value is subject to property taxes each year. The property tax millage rate is used in conjunction with the assessment ratio and a property’s assessed value to then determine the tax owed.
To determine a property’s tax liability, multiply the property’s assessed value by the assessment ratio for that property type (4% for an owner-occupied residence or 6% for a commercial property, for example). Multiply that result by the millage rate.
Greenville County’s base millage rate is 48.8 mills, which covers operations and debt service. Using this rate for a commercial property valued at $100,000, for example, would produce a property tax bill like this:
- $100,000 x 6% = $6,000
- $6,000 x .0488 = $292.80
In this example, that is only the portion of the property taxes that funds county operations and debt. There are additional countywide millages assessed for the library (8.0), Greenville Tech (5.0) and the art museum (1.5). Most properties in the county are also assessed .4 mills to support the Bon Secours Wellness Arena.
Almost all real estate in the county is further subject to millage assessed by the school district. In the case of the Greenville County School District, that is 194.2 mills, according to the 2021 millage tables compiled by the Greenville County auditor. (Small portions of the county are subject to millage rates set by the Anderson and Spartanburg county school districts that serve those areas.)
Besides county and school district millage rates, a property will almost certainly be subject to the millages of one or more of the 136 taxing districts throughout the county, depending on where the property is located.
Among those entities that have assessed millage rates are:
- 18 special-purpose districts, most of which were created by Greenville County Council for the upkeep of established or historic neighborhoods such as Chanticleer, Devenger, Woodside, Monaghan and Dunean, for example.
- Thirty-one fire service areas that provide fire protection for different parts of the county. Some largely coincide with municipal boundaries like Greenville, Mauldin and Greer, while others cover rural parts of the county like Gowensville, Piedmont, Glassy Mountain and Caesars Head.
- Six municipalities: Greenville, Greer, Fountain Inn, Mauldin, Travelers Rest and Simpsonville.
To see your property tax bill and how those tax dollars are allocated, visit the tax search page on Greenville County’s website at greenvillecounty.org/appsas400/votaxqry/#.
