Is S.C. rolling the dice on real estate recovery?
If the South Carolina economy were such a board game, the Realtors argue, a recent change in the way properties are assessed for taxes is keeping players – and their cash – on the sidelines just when investments in homes and commercial real estate are most needed to aid in the state’s recovery.
Of course, there are other players at the table who have drastically different views, believing the current way of assessing tax, which was approved by the state’s voters in a 2006 referendum, is the fairest way to collect taxes and support local government.
Realtors from around the state, including Aiken, will flood the State House Tuesday in support of a Senate measure that would change the rules of the game and spur new business by eliminating the sharp rise in taxes for new buyers.
If Aiken Realtors are any indication, most in that industry are both frustrated by what is called “point of sale” and the impact it has had on their businesses in a time when they are suffering.
They are even more frustrated that few outside their ranks seem to know much or care about the complicated issues of tax reassessment caps, point-of-sale provisions and the stakes involved. Today, the Aiken Standard offers a primer on the issues involved in a series of bite-sized explanations and examples.
15 percent cap on reassessment passes in 2006, point-of-sale provision little noticed
South Carolina voters enthusiastically passed the cap in headier times when real estate values were climbing rapidly. Proponents argued the cap would help safeguard people in homes that had appreciated greatly in value from losing them due to inability to pay higher taxes. With that same vote, the point-of-sale provision was approved, allowing the cap to be removed when a property changes hands and requiring the new owner to pay taxes based on the actual sales price.
Local governments call it growth in the tax base, Realtors label the increases a windfall. More Details
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