Current real estate tax rule regarding point of sale assessment to determine property taxes due may change. South Carolina state legislature may rewrite a portion of the 2006 law that gave homeowners a tax break in exchange for a higher state sales tax. Lawmakers say they are concerned one provision of the law has hurt real estate sales in the state.
Of particular concern, they say, is a requirement that homes and businesses be taxed at their full market value when sold. Advocates say that requirement has scuttled sales after buyers learned what their new tax bills would be. Both the House and Senate are working on bills that would eliminate that part of the law.
Eliminating so-called "point-of-sale" property reassessment would mean a property's tax value could increase by only 15 percent every five years, a constitutional change approved by state voters in 2006.
The property tax swap bill, known as Act 388, may soon be overhauled. Right now though, with record low sales prices on property in the Myrtle Beach real estate market, point of sale basis for tax value is a huge plus with significant savings. Property owners who bought at the peak of the market in 2005 are paying almost double taxes right now. Could this be another reason to buy property in Myrtle Beach????
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