By FITSNews || Hit hard by the slumping national housing market and a tax code that they say penalizes new home sales, South Carolina’s realtors are launching an aggressive new media campaign aimed at raising awareness of their issues.
The campaign centers around their objection to “Act 388,” a botched tax swap passed by the S.C. General Assembly in 2006 that briefly lowered property tax rates on primary residences in exchange for a permanent increase in the state sales tax. Championed by S.C. House Speaker Bobby Harrell, this tax swap legislation – which nearly everyone now acknowledges as a complete and total failure – also increased taxes on non-residential and business property.
While we object to complicated tax swaps on principle (we should be passing simple tax cuts instead), realtors in South Carolina are rising up because the law assesses a “point of sale” tax that is weakening an already anemic property market.
According to SC Realtors president Nick Kremydas, this gives local governments the ability “to dramatically increase property taxes on homes, land and businesses when they are sold.”
“Because of the unfair point of sale tax, some companies have said they will not relocate or open new businesses in South Carolina, taking their jobs to other states, and in a tough economy the last thing we need are taxes that eliminate jobs and prevent new businesses from opening,” Kremydas said. “Families across South Carolina are struggling to pay their bills and hold onto their jobs, and local governments want more. Local governments should find ways to encourage job creation – and improve efficiencies – instead of supporting a tax that punishes businesses looking to bring jobs to the state.”
To aid their efforts, the state’s have launched a website called It’s Just Not Fair.com that includes a petition for South Carolinians to sign.
You can check the site out for yourself by clicking on the link below …
WEB EXTRA
By Recovering Lobbyist January 18, 2010 at 1:57 pm
The Realtors Association was a strong proponent of Act 388 in 2006.
By ExInsider January 18, 2010 at 3:06 pm
Exactly….it seems like now they are trying to go back on their part of the deal. Is Act 388 screwed up? You bet. But this “fix” is only going to make it worse.
By ed rollins January 18, 2010 at 8:00 pm
appraisals are not a reliable basis for determining real estate
values when you have 46 counties determining the value. who can argue
that property is not worth the price you paid for it?
By GlendaGirl January 18, 2010 at 8:26 pm
this campaign is a day late and a dollar short – word is a there’s a compromise being brokered on the bill right now
By Liberty For Me January 18, 2010 at 8:34 pm
You should be for Liberty at all times and for everyone…Not just when it is beneficial and timely for yourself.Hard to get support when you are so short sighted and hypocritical
By just another person January 18, 2010 at 8:51 pm
Sic,
How do they propose we live up to the SCOTUS ruling against Arizona which states that States must make sure all schools are funded equally (on a per child basis). The ruling came down in 2006 which are forcing states to take over funding for education and take it away from counties and districts. It was an expansion of separate but equal ruling because people who were in lower property value areas were getting a “sub par education” in Arizona. SCOTUS agreed and are now forcing the states to fund on a per child and per need (special needs or lower income kids get more) basis.
By south mauldin January 18, 2010 at 9:27 pm
I love real estate agents. They were 100% in favor of this tax swap, and now they are 95% against it. Typical of every goddamn idiot real estate agent I have to deal with on a daily basis. They don’t give a shit about anything but their commission.
By Go Cocks! January 19, 2010 at 8:47 am
One aspect of the current state of affairs produced by Act 388 that is overlooked is a defacto renovation tax credit. When you purchase a house that requires significant renovations, i.e. a foreclosure, your tax basis is the purchase price, even if you spend a boat load of money on renovations. Remodelers should love 388 as should the historic preservation crowd. For new home builders, however, 388 is a competitive disadvantage. I am loving the tax basis on my new old home.
By moving out January 19, 2010 at 11:29 am
Well let’s see we could just sit back and watch unemployment continue to rise, watch out property values drop, and watch the cost of services rise.Are we could try to provide a more equitable property tax, create more and better jobs which equals a better quality of life for all South Carolians, if this is called self serving, I plead quilty.
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