Point of Sale in South Carolina -- 2010 Session Begins

Point of Sale in South Carolina -- 2010 Session Begins

Changes to South Carolina's property tax structure, known as Act 388, have had a negative effect on the real estate market and the economy of SC. Act 388 included a provision allowing for point of sale reassessments. Now, property is reassessed each time there is an assessable transfer of interest (ATI), based on the sales price.

Point of sale assessment point of sale (ATI) reassessment translates into a dramatic increase in property tax and is driving real estate investors out of our state, while businesses considering locating in South Carolina are choosing our neighboring states instead. From industrial properties in the upstate to commercial facilities in the midlands to investment residential property along the coast, every market has suffered.

South Carolina REALTORS are supporting H.3272 that addresses the inequities caused by point-of-sale assessment. H.3272 extends the 15% reassessment cap applied to all properties at countywide resassement to assessable transfers of interest (ATIs) and uses that value as the baseline for the next countywide reassessment cycle. It has already passed the House and is awaiting consideration on the Senate floor.

Addressing point of sale is paramount to attracting commercial investment and job creation in South Carolina and sends the message to potential investors that SC is ready to compete. Passage of H.3272 will put South Carolina back on the path to economic growth.Tell me more
Talking Points
Prior to 2006, counties in SC assessed property every five years, though each of the forty-six counties had a different assessment method. Some counties assessed very close to market value, while others assessed at just fifty percent of market value.

In the residential market, neighboring properties now have gross differences in property tax obligations, because one property sold post 2006 property tax reform and the other has not changed hands. This inequity will only worsen over time, as longtime residents now have a disincentive to move.

In the commercial market, when a property changes hands; the additional property tax burden must be bourn by the tenants. If the leases on that property do not allow for the increase, then the actual value of the property decreases as the commercial facilities net operating income decreases.
Further, a commercial facility that has not changed hands that is located near another that has been sold recently has an unfair and inequitable market advantage – the ability to offer lower lease costs with wider income margins. This produces another disincentive to transfer.
Addressing point of sale assessment cannot wait!
Subject:Approve Point of Sale Legislation

The time to act on point of sale legislation is NOW! Please support H.3272, which has been set for Special Order and is awaiting second reading.While I am disappointed that the Senate did not vote on or even debate H.3272 last year, the start of the new session provides the opportunity to immediately address this issue and move our state forward. Correcting the inequities caused by point of sale assessment is paramount to attracting commercial investment and job creation in South Carolina.Here are the facts: Point of sale assessment results in disparate property tax burden between neighboring properties, higher office and store rental costs for South Carolina businesses, higher rents for non-homeowners, increased pricing on the goods and services South Carolinians enjoy, disincentives to transfer property, inequitable tax burdens based on whether a property has transferred, and property devaluation. All of this forces businesses looking to locate in South Carolina to take their investment and jobs elsewhere. Hundreds of millions of dollars of commercial investment in South Carolina has been lost since Act 388 took effect. That's just the tip of the iceberg.

I respectfully urge South Carolina Delegation to bring H.3272 up for consideration and vote yes for this bill. The continued economic recovery of this great state depends on it.