Taxes, taxes, taxes

So as of yesterday, June 1st, an extra 1% has been added to the state sales tax.  The South Carolina sales tax was 5%, so now we are up to 6%.

The items that will not be affected by this increase are items with a set tax, like cars and boats, and groceries.  The grocery tax was lowered earlier this year to 3.5%, and is scheduled to be lowered even more later this year.

But this increase is really not all that bad.  Why, you ask?  Because of what we will get in return. 

South Carolinians have been fighting to have property taxes reduced or abolished for years and years.  The onset of this additional state sales tax is a preempt to just that.

By the end of the year, the state is set to get rid of all property taxes on primary residences.  Yay!  This is a savings of thousands of dollars, depending on which county you live in, and the size and age of your home. 

Those folks with mortgages that have their taxes rolled into their escrow will no longer have to pay that additional money.  If your insurance is escrowed as well, then of course you will still be paying that.  But it could knock off $100 or more from your payment. 

(It would be really great if you continued to pay the extra money every month, because you'd shrink your principle down and pay off your loan a little faster.)

And the best part about it is that because it's a sales tax increase, all of our tourists will be helping to fund our state that much more.  So South Carolina will most likely be making out better.

I think this is a great thing.  I can't wait for them to do away with the property taxes.  I know the state will still be making lots and lots of money from the additional sales tax, but it won't all be coming from the residents of South Carolina.  How can you argue with that?