| In June of 2006, the Legislature passed and the | | | | Specifically, the new property tax law:eliminates |
| Governor signed in to law two bills aimed at | | | | the school operating portion of property taxes on |
| comprehensive property tax reform. The first bill | | | | primary residences and replaces them with a |
| made changes to statute governing real property | | | | one-cent statewide sales tax; decreases sales tax |
| taxes and allowed for property tax swap. The | | | | on groceries to three percent; includes a provision |
| second bill allowed for a Constitutional amendment, | | | | addressing school funding inequities; money left |
| subject to voter approval, to change the way real | | | | over after that goes towards reducing county |
| property is assessed. This Constitutional | | | | operating expenses; changes the method of |
| amendment was approved by 69% of South | | | | reassessment on all classes of property and caps |
| Carolina voters in the 2006 General Election. | | | | increases in taxable value to 15% over a 5-year |
| Property tax reform was a highly public issue that | | | | period; reverts to point of sale reassessment on |
| received a great deal of attention from legislators, | | | | all real property transfers; established tax free |
| as no-tax advocates convened daily at the State | | | | holidays for the two days following Thanksgiving |
| House and turned supporters out at rallies, | | | | of 2006; closes the alternative financing loophole |
| hearings, and committee meetings. Many differing | | | | that local governments use to circumvent the |
| versions of property tax reform were drafted | | | | constitutionally mandated eight percent debt limit; |
| and considered, including a proposal that would | | | | is tied to spending and millage caps on all levels of |
| fund property tax reform through an $18 per | | | | government; and allows voters of any county to |
| $1000 of property value increase in the real | | | | further reduce property taxes on all classes of |
| estate transfer fee and another that would double | | | | property through passage of an additional sales |
| the current fee. The new law represents a | | | | tax referendum. To read the new laws, please |
| compromise between House and Senate | | | | click here. |
| proposals and does not include any increase in | | | | Courtesy of Cashion Didier of the South Carolina |
| taxes and fees on real property transfers. | | | | Association of Realtors. |