Coastal REO Solutions, one of Myrtle Beach’s top troubled asset liquidation firms, has seen an unfortunate increase in REO (bank owned homes) and Short Sales along the Grand Strand. There are many factors for this and they can all be debated. You can fault the economy, the real estate bubble, the fact that credit was too easy to obtain, and so on. However, one of the main things holding back the real estate recovery along The Grand Strand is the Point of Sale (POS) Tax Assessment also known as “The UNFAIR Tax”.
The long and short of this legislation is this – Two property owners own identical homes or investment property on a similar plot of land, one purchased before the POS and one after…
Purchase before POS assessment
$350,000 (assessed value) x 6% = 21000 (assessment) x .2119 (tax rate) = $4,449.90 Tax Bill
Purchased after POS assessment
$500,000 (purchase price) x 6% = 30000 (assessment) x .2119 (tax rate) = $6,357.00 Tax Bill
FOR THE SAME PROPERTY!!
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.
South Carolinians feel strongly about attracting new businesses and jobs to the state, and believe the point of sale law is hurting our economy.
To make matters worse, city and county governments can spend the money they collect from point of sale any way they want without local governments. And while most local governments have not cut back on spending—like the rest of us—the point of sale tax is hurting our economy, the housing market, and working families.
However, there is a fix it’s not too late, there is a bill before the Legislature. So it’s time to tell the politicians in Columbia to fix this law and get our economy back on track. Take action today!
Tags: Point of Sale Tax
