Below is a quick “how to” apply for the 4% residential tax in the Hilton Head Area.  When you purchase a property for your primary home in the Hilton Head area you can apply as soon as you close.  But, keep in mind you may have to reapply in the second year if your new home had previously been a second home.  Read more below.

Was your new Hilton Head home a second home previously?

New owners after closing on their Hilton Head property should change their license, registration and documents to reflect their new Hilton Head address in South Carolina.   Residents can than apply for the 4% tax rate as soon as all of these documents are changed. Beaufort County also requires form SC 1040, but the first year a new Hilton Head area resident may sign a Memorandum of Understanding(MOU) that allows them to receive the 4% tax rate TEMPORARY for that year.

Don’t forget to Reapply the second year for your new home!

The following year the owners will be back at 6% and will have to reapply with SC Driver licenses/vehicle registrations/ and a SC 1040. If the property is in a trust, the trust must be brought in for verification of Trustee/Beneficiary of all income and principle during their lifetime.

Buying a home from a Hilton Head Resident?

If the current owner has the exemption(s), the new owner will have the benefit of those exemptions until the end of the year.  The lawyer closing the sale will prorate the taxes for the buyer and seller.  Beaufort County sends the bills out to the owner of record at the time of printing and it will be for the full year’s taxes.

All this information should be available on bcgov.net at the Assessor’s FAQ page or by calling any of the Assessor office numbers. Beaufort.(843)255-2400  Bluffton.(843)255-2419  or Hilton Head (843)255-2425