Are Property Taxes Hurting South Carolina's Chance At Economic Recovery?

*picture from propertytaxax.com

I found this article interesting for several reasons:

1) Liberty has the 2nd highest property tax rate in Pickens County.

2) It comes from a realtor, not a political action group.

3) It's actually a good read, even though it approaches property tax burdens from the wrong angle.

Take a look at this article from The Times & Democrat:

Property Taxes Hurting S.C. Economy

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.

AT LIBERTY TO SAY DOT COM COMMENTARY

But, point of sale also relieves long term homeowners and business owners of rising property tax bills. Seniors, in particular, who have fixed incomes are losing their homes due to the overhead of rising property tax assessments. A home is only worth its selling price both to the buyer and to the seller. It is unfair for counties to tell me my home is worth X amount when I most likely couldn't sell it for X - 10% of assessment (if at all) under certain economic conditions (i.e. our current housing market). Point of sale assessment is the most fair form of property tax - if property tax can be considered fair at all.

One other consideration concerning valuation and assessment of property - HUGE AMOUNTS of money could be saved if the state moved to "point of sale" with cyclical depreciation. How? There would be no protest process. There would be no need for property assessment. There would be much less paperwork. Hundreds of employees are needed for collection, valuation, and assessment of property. Vehicles are needed for assessment drive-bys, gas for those vehicles, lawyers to make legal decisions, etc etc... The government could trim these positions and costs and more than make up the difference.

And just a note:

Conservatives Of the Upstate is offering a FREE "property tax reduction workshop" at their next meeting on November 12th at 6:30PM.

Meetings are held the second Thursday of every month at:

Blue Ridge Bible Church
769 Belle Shoals Rd.
Pickens SC, 29671