I don’t hear much talk from home owners about the South Carolina property tax cut that went into effect fall 2007. Carmen and I were happy after looking at our lower property tax bill a few months ago. I did a Google search today and found a couple articles about the tax cut. Mike Terry, a Mount Pleasant real estate agent, had a blog post about the tax cut or should I say tax swap. Here is a portion of his post:
South Carolina Homeowners get a tax cut
Posted at Charleston’s Home Port by Mike Terry
Sep. 4, 2007
WHAT THE TAX SWAP MEANS TO YOU
A recent study by the Strom Thurmond Institute at Clemson University analyzed how the tax swap a 1-cent-a-dollar increase in the state’s sales tax to pay for property tax relief on owner-occupied homes would affect homeowners and renters. Here’s what the study concluded:
Most homeowners will pay less in taxes. The increase in the amount of sales tax for most homeowners will be less than the property tax relief they’ll get.
All renters will pay more in taxes. Rental housing does not qualify for property tax relief under the bill. But everyone, renters included, will pay more in sales taxes.
Homeowners in school districts with higher property tax rates will receive more tax relief than those with lower tax rates.
Homeowners with modest incomes and modest homes will benefit less than homeowners with higher incomes and more expensive homes.
I found another article via the associated press in the Aiken Standard on line post.
When I have discussed this topic with neighborhood friends, most like the lower property taxes but are concerned about properly funding the schools. State economists claim the tax swap will more than pay for the property tax offset. Time will tell. But lower property taxes is another good reason to relocate to South Carolina.