1. 1 2014 REAL PROPERTY REASSESSMENT

3. This is the County’s sixth reassessment The 2013 property values for property tax purposes are as of December 31, 2008 from the last reassessment performed for 2009 with implementation postponed until 2010. Properties qualifying as ATI’s (Assessable Transfers of Interest) have been reassessed based on 12/31 of the year of sale The 2014 reassessment values are as of December 31, 2013 3

4. The total estimated decrease in our real property value from prior tax year is -2.87%. The 2014 reassessment is the first reassessment in Horry County’s history resulting in a total decrease in market value. Some prior reassessments have had total value increases in excess of 40% The values from the 2014 reassessment that impact the real property tax revenue is determined by adjusting for the impacts of the properties for which revenue is allocated to TIFs (Tax Incremental Financing districts), adjustments for the property values associated with Fee In Lieu of Taxes(FILOT)amounts relating to the Multi County Business Parks, and adjustment for the growth in value due to improvements.

6. 1. Constant change in real estate market 2. Increased number of multiple lot discount applications (new legislation) 3. Increasing number of owner occupied residence applications reducing assessed values (new legislation) 4. Builder Exemptions 5. Decline in farm/timber tract developments resulting in longer periods of agriculture special assessment 6

12. Reassessment History Reassessments #ParcelsMarketCappedAssessed 1982 81,9854,270,000,000 0179,011,256 1987 112,1578,591,653,840 0391,431,783 1999 169,00317,289,920,052 0753,477,812 2004 postponed to 2005 207,49327,588,501,430 0 1,198,786,174 2009 postponed to 2010 245,14340,282,779,94636,482,779,946 1,738,243,535 *2013 247,00041,005,667,06537,448,350,220 1,781,059,941 2014 250,00039,826,247,72737,295,210,066 1,772,646,689 2014 Assessed Value Exempt by CAP (99,186,954) * Prior tax year to 2014 reassessment

13. Reassessment Appeal History Tax Year # Appeals % of Parcels Appealed 19829,838 12.0% 198718,538 16.5% 199915,187 9.0% 2004 *200511,012 5.3% 200911,865 4.9% *201019,843 8.1% *2004 reassessment postponed until 2005 *2009 reassessment postponed until 2010

14. Legal Residence (New Legislation) Agriculture Builder’s Exemption Multi Lot Discount (New Legislation) Homestead Exemption Commercial ATI HOA Military Exemption (New Legislation) Historic Exemption (freezes value up to 15 years) Roll Back Taxes 14

15. Rollback millage calculation revised, uniform millage imposed SECTION 3. A. Section 12-37-251(E) of the 1976 Code is amended to read:12-37-251  "(E) Rollback millage is calculated by dividing the prior year property taxes levied as adjusted by abatements and additions by the adjusted total assessed value applicable in the year the values derived from a countywide equalization and reassessment program are implemented. This amount of assessed value must be adjusted by deducting assessments added for property or improvements not previously taxed, for new construction, for renovation of existing structures, and assessments attributable to increases in value due to an assessable transfer of interest."  C. This section takes effect for rollback millage calculated for property tax years beginning after 2010

16. Taxable Value x Assessment Ratio = Assessed Value Assessed Value x Millage = Billed Revenue Roll Back Millage = Previous Year’s Billed Revenue New Assessed Value 16