SC Representative Chip Huggins
This Saturday morning on Success in Real Estate, our guest will be Rep Chip Huggins. Rep Huggins will be addressing legislative issues that are having an impact on the SC Real Estate Industry.
One major topic of conversation will be Point of Sale. This has been an ongoing issue in the news for a couple of years now. However, many South Carolina tax payers do not know or understand how the Point of Sale works and how it determines home owner taxes. South Carolina can and does charge owners of property an "Ad Valorem" tax. Simply put, the state can tax all property according to its value.
One of the major issues with the Point of Sale, it does not tax property according to the value. Rather, it taxes owners based on the price. Price and value are two totally different things according to the Appraisal Institute. Property taxes, based on Point of Sale, makes the "Value" of the property what ever you paid for the property. To determine your property tax, you multiply the "Value" (what you paid for the property) times the assessment rate. In South Carolina, owner occupied residential homes can be assessed at 4% with second homes, investment property and commercial property being assessed at 6%. Value times the assessment rate will give you the assessed value. Take your assessed value times the millage rate to get your annual property taxes.
Value will nearly always fluctuate where as point of sale (price paid) would not. This is the reason so many property owners are up in arms when they get their tax bills. I think you will find that SC residential property taxes are some of the cheapest taxes anywhere in the country. The major issue is how Point of Sale affects investment and commercial properties. Many argue that Point of Sale is driving investors and business out of South Carolina costing the state millions of dollars in tax revenue.
Rep Chip Huggins will explain how Point of Sale works and how will the recently passed amendment to the Point of Sale law impact property taxes in the future. If you have any questions or comments for Rep Huggins, give us a call between 8:30am and 9:30am at 803-739-8730 this Saturday morning, July 9, 2011.
Success in Real Estate Radio Show is provided by the Real Estate School for Success. This show airs every Saturday morning on WIS Radio, 1320AM.