S.C. needs 'point of sale' law

Our current property tax laws are dramatically impacting our state's economy. Millions of dollars and potential homebuyers and business owners are locating to North Carolina and Georgia instead of investing in South Carolina -- just ask your local Realtor or anyone who has recently purchased a home, renovated their existing home, or opened a new business.

Property tax assessments that automatically take place when you buy or renovate real property are dramatically increasing property taxes. That's why Realtors believe that lowering your property taxes must remain the top legislative priority at the Statehouse.

Addressing point of sale is paramount to attracting commercial investment and job creation in South Carolina. I applaud the S.C. House of Representatives, which has already passed this legislation, and the S.C. Senate in recognizing the importance of this issue, which is why H.3272 was set for special order to ensure swift action when the Senate convenes in January.

Here are the facts: Point of sale assessment results in disparate property tax burdens between neighboring properties, higher office and store rental costs for S.C. 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. More than $500 million of commercial investment in South Carolina has been lost this year alone.

We must and we can reverse this trend. It's not rocket science -- commercial and residential investment spurs job growth, consumer spending, employment, economic mobility and broadening of the tax base; in turn, revenue to local governments and schools will grow as well. In fact, I think it's narrow-minded that those opposed to lowering your property taxes cannot see the immediate economic expansion that H.3272 will foster.

Those who don't want to lower your property taxes argue that H.3272 is just another patch to the tax reform legislation that was passed in 2006, known as Act 388. South Carolina Realtors agree that Act 388 has some serious long-term problems. H.3272 has a shelf life of only five years -- enough time to provide an immediate, short-term catalyst to reignite our economy and put South Carolinians back to work. H.3272 gives the Tax Realignment Commission and the General Assembly the time to do what needs to be done -- an overhaul of the entire tax code.

Together, we can put South Carolina back on the path to economic growth.

By passing H.3272 in January, the Senate will send S.C.'s citizens and businesses the clear message that South Carolina is ready to compete again.

Drew Streett

President

Coastal Carolina Association

of Realtors

Atlantic Street

Garden City