Point of Sale Reform - 2011

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An overview of the developments and

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  • For example, if you buy a home, you could pay higher property taxes than an identical home in your neighborhood.
  • Point of Sale Reform - 2011

    1. 1. Point of Saleallowed local governments to dramatically increase property taxes on homes, land and businesses when they are sold. <br />
    2. 2. Because of the unfair point of sale tax, some companies have said they will not relocate or open new businesses in South Carolina. Our state has lost hundreds of millions in economic investment and that means businesses are taking their jobs to other states.<br />
    3. 3. Point of Sale is economically devastating to homeowners, business owners and diminishes our overall economic stability and growth potential.<br />
    4. 4. On June 14, 2011, Governor Haley signed Point of Sale reform into law.<br />
    5. 5. The compromise bill includes the following:<br /><ul><li>The legislation only applies to 6% property (commercial and non-owner occupied residential).
    6. 6. Upon an assessable transfer of interest (real estate sale), a property is reassessed at fair market value and then reduced 25%. The reduced assessment or previous assessment prior to sale - whichever is higher - would be the assessed value until the next ATI or county wide reassessment.
    7. 7. This legislation is for all properties, which have undergone an assessable transfer of interest, since January 1, 2011.</li></li></ul><li>Under the compromise bill…<br />A home (assessed at 6%) is assessed for $200,000 in 2008 by the county.<br />The home sells for $300,000 in 2011.<br />The new assessed value is $225,000, a 25% reduction off the sold price.<br />
    8. 8. Under the compromise bill…<br />A commercial property is assessed at $1 million in 2008 by the county.<br />The building sells for $2 million in 2011.<br />The new assessed value is $1.5 million (25% reduction of sold price).<br />
    9. 9. Under the compromise bill…<br />A home (assessed at 6%) is assessed for $200,000 in 2008 by the county.<br />The home sells for $225,000 in 2011. <br />The new assessed value stays at $200,000 (25% of the sale price is lower than the current assessed value, so it stays at previous assessed value).<br />
    10. 10. Under the compromise bill…<br />A commercial property is assessed at $1 million in 2008 by the county.<br />The building sells for $1.25 millionin 2011.<br />The new assessed value is $1 million (25% of the sale price is lower than the current assessed value, so it stays at previous assessed value).<br />
    11. 11. Still have questions about Point of Sale?<br />Contact <br />Ryan Castle<br />Government Affairs Director<br />Charleston Trident Association of REALTORS<br />Ryan@CharlestonRealtors.com<br />843.760.9400 x136<br />

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