Our current property tax laws are dramatically impacting our state’s economy. Millions of dollars and potential home buyers 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 an 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.

Instead of working with homeowners and business owners, those opposed to lowering your property taxes have engaged in misleading rhetoric. Without credibility, they say point of sale has not impacted our real estate market. They would rather that we sit idly as the recession eats away at the morale of this great state, while local government reaps the tax windfall. It’s time to put an end to the rhetoric. Businesses are failing, and families are losing their jobs while school boards and local governments are sitting on cash reserves in the hundreds of millions of dollars. Clearly, there is a problem when South Carolinians cannot pay their bills and are losing their jobs, while local governments are not just staying fat, but growing even fatter.

Addressing point of sale is paramount to attracting commercial investment and job creation in South Carolina. I applaud the South Carolina House of Representatives, which has already passed this legislation, and the South Carolina 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 a disparate property tax burden between neighboring properties, higher office and store rental costs for South Carolina 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. That’s just the tip of the iceberg.

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 South Carolina’s citizens and businesses the clear message that the South Carolina is ready to compete again.

— Nancy Foster, 2009 President, Southern Midlands, Association of Realtors

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