What homeowners need to know about Point of Sale Assessments

April 29, 2008 in Development, Murrells Inlet Home Buying, Murrells Inlet Home Selling, Real Estate Values
Tags: point of sale assessments for real property, property taxes, SC Point of Sale Assessment, South Carolina Real Estate

Under a law passed in 2006 homebuyers may have suffered serious sticker shock when they received their property tax bills, especially if they had relied on what the former owner may have been paying.  The new owners are immediately taxed at the sale price of the property instead of the former 5 year assessments.

Good news for homeowners is that the House approved bill H.4942 by a 102 to 0 vote, paving the way for a much needed change in the law.  Not only will the new law reduce the inequities that exsist between neighboring properties, hopefully it will help to increase home sales.  The current tax could be cause for buyers to delay purchasing, especially if they are aware the law could be about to change saving them hundreds of dollars on their property tax bills.  

With the landslide passage in the House a hold up in the Senate Finance Committee would be detrimental to our states economy and unexpected.   If you would like more information send me an email. 

Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.

 UPDATE

6/20/2008 – The Senate failed to pass this important bill this year.   Point of Sale assessment remains the law and buyers need to be aware how the new assessments will affect their bottom line.  Property is reassessed at the purchase price at the time of sale. This is an important issue to be taken up again in 2009.