Point of Sale Tax Assessment is Bad for SC Real Estate and The Economy

By
Services for Real Estate Pros with Charisma Media Group, LLC 50622

Abraham lincoln"I gotta tell it like it is--"

Home buyers need to be clear on the Point of Sale Tax Law. I am hopeful that it will get repealed and soon.

Here's what our backward-thinking lawmakers put on us:

If you purchase a home in South Carolina, your taxes will be assess based on the SALE price (the market value), while comparable occupied homes will be assessed (not the market value) as they have been--let me explain:

Let's say you purchase a property for $300,000, you will pay property taxes on the sale price $300,000. Your neighbors, properties identical to yours will pay taxes on the assessed value--which will, more than likely  be much lower then the taxes on the newly purchased home.

What if the current assessment for home in the neighborhood are at $150,000 or $200,000--they pay much less in taxes. Doesn't seem fair. And it isn't.

Secondly, the current law limits assessment increases to 15% every 5 years. Again, my neighbor will be paying lower taxes on a comparable property.

What if I am in the market to buy a home. If I have a choice between paying higher taxes or lower taxes on comparable homes, I might choose the comparable home with the lower taxes.

Things are hard enough for the housing market. t We want industry--lucky we're getting Boeing--but tax laws like this one discourage businesses from coming here.

Be encouraged, the South Carolina Realtors Association is lobbying hard to get this law repealed. 

 

 

 

Posted by

John March

843-368-9146

Comments (2)

Chris Walters
Edisto Realty Edisto Beach,SC DiscoverEdisto.com - Edisto Beach, SC

I am in total agreement.  I lost a ocean front buyer to Georgia for this very issue.  They bought a $1.2m house in GA the week after visiting SC.  That one hurt.  Edisto was their first choice but they refused to be victims of Point of Sale. 

Dec 06, 2009 10:57 AM
John March
Charisma Media Group, LLC - Bluffton, SC
"Engage, connect, prosper" (Matt 6:33)

Chris, maybe our lawmakers will wake up and smell the coffee...or maybe we should just throw them out of office...

Dec 07, 2009 04:21 AM

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