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:
"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 I am hopeful that it will get repealed and soon.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:
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Be encouraged, the South Carolina Realtors Association is lobbying hard to get this law repealed.
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.
Chris, maybe our lawmakers will wake up and smell the coffee...or maybe we should just throw them out of office...