Realtors head to State House to fight for taxation bill 5/19/2009 11:35 AM
By MARK NELSON Staff Writer
About 20 Aiken County real estate agents left for Columbia this morning to fight for change in the way property taxes are assessed when property is sold.
“We are excited about going to Columbia this morning to take the opportunity to talk to senators that will be debating and voting on the point of sale bill on Wednesday,” said Ron Pope, Legislative Chairman for Aiken Board of Realtors.
The Aiken County group join colleagues from around South Carolina who are traveling to the State House to make their case for the changes to the law in the waning days of the legislative session this week. The Senate is expected to debate a measure this week that would eliminate the point of sale practice.
In 2006, South Carolina voters approved measures that would cap value increases at 15 percent cap every five years for existing homeowners, and a measure that removes that cap when a sale takes place.
This week, the Realtors hope the S.C. Senate will take up a measure that would keep the cap in place and extend it to new buyers as well for up to five years. Any subsequent assessment would also be limited by the 15 percent cap, even for recent buyers.
Realtors say the change is necessary to get sales going again. They say they are losing sales because of the often steep jump in property taxes once property is reassessed based on a new sale.
On the other side of the issue, city and county governments around the state have slashed their budgets as they face the worst economy in decades. Without new properties being developed, they argue the only avenue for growth in the tax base is to tax recently sold properties at their actual value instead of the artificially lower value imposed by a 15 percent cap on value increases for existing homeowners.
Taxing authorities and opponents say it is having your cake and eating it too by allowing high-end real estate buyers to pay taxes on a lower percentage of the value than those who own more modest properties that have not seen an increase in value.
Contact Mark Nelson at mnelson@aikenstandard.com.
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Comment Title: This is insanity!
Here is a letter that I sent to my so-called legislative representatives today -- I urge you to resist pressure from Realtors to remove the "Point of Sale" provision from property tax law. The Realtors were in favor of the abominable and highly regressive "tax-swap" of a few years ago when property taxes were drastically cut and sales tax raised. Also, they loved the attendant cap on reassessments which included the "point of sale" provision. Now, their highly lucrative businesses are being hurt a little bit, and they are squealing. Real estate is already the most highly tax-advantaged asset one can own; for example, income tax deduction on the interest on a SECOND HOME mortgage of up to ONE MILLION DOLLARS. Now, the Realtors want, once again, to shift the burden of taxes to those who can least afford it, to benefit their own selfish interests. Property taxes in South Carolina are already among the very lowest in the nation. Perhaps this has something to do with South Carolina being at the bottom, or very near the bottom, of every quality-of-life measurement in the county, including schools. PLEASE DON"T CAVE IN TO THE VERY SELFISH INTERESTS OF THE POWERFUL REAL ESTATE LOBBY!
Posted by: Local On: 5/19/2009
Comment Title:
The bill was voted on in 2006. Did the realtors not vote? Have the realtors been asleep for three years? Why should a special interest group be able to override the majority? Why should the upper crust get a free ride at the expense of those who own property of lesser value? Come on now you can't possibly think that it is fair or can you? After all our present administration supports redistribution of wealth...this is what it is.
Posted by: On: 5/19/2009
Comment Title: LOPSIDED TAXES
This system is unfair.why should a family who purchases a home pay 2 to 3 times the taxes the previous owner did? This has nothing to do with the realtors,it is about being fair in taxing property.Just because you just bought your home,should you pay more taxes than anyone else in you neighborhood if all the homes are of the same value? Common sense needs to be used an a more fair tax structure needs to be put into place.This tax failure will affect everyone who purchases a home from here on out if it doesnt get changed.
Posted by: On: 5/19/2009
Comment Title: Get Ready
You can be rest assured that RYBERG and Massey will be in the these realtors' pocket. It is all about $$$$. Money for Sanford's Pals and COMMISSIONS for the realtors. Why hesitate with your vote? What has RYBERG and Massy done for us? Vote for change and get these clowns out of Columbia.
Posted by: On: 5/19/2009
Comment Title:
If any of the Senators from my district side with these vultures they can forget my vote next year. These Realtors could care less about the tax base they are upset because they don't make a commission. Besides if those "well to do buyers" can't afford the taxes then it's for sure they can't afford the house. Maybe they are not as "well to do" as they pretend!
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