State senators, realtors and government associations met Monday to further discuss a plan that would change the way property is taxed, after a compromise plan failed last Thursday.
Oconee County Senator Thomas Alexander introduced the legislation which he hopes may come back to the Senate floor this week.
The bill was introduced in the Senate Wednesday but debate was interrupted for negotiations with realtors.
The current so-called “point-of-sale” reassessment rules became law in 2007, when tax assessments were capped for longtime residents, while assessments were allowed to rise to market value when properties were sold.
Alexander says there are problems with current law, since reassessment is triggered by property sales. He says the House bill is designed to encourage real estate investment and boost the economy.
(Alexander on point-of-sale MP3 :28)
Last week’s proposal was aimed at spurring commercial real estate sales. But the S.C. Association of Realtors pulled its support for a compromise plan, wanting the tax breaks to also apply to residential property. The organization’s board wants it to cover owner-occupied homes.
On the other side, local governments and school board are concerned that exemptions from the current reassessment would cut into their income.
Alexander says senators have been trying to find common ground among all the interested parties. He says in the end, the idea is to grow local economies.
The proposal would postpone the implementation of the value of a parcel of real estate until the next countywide reassessment program, as long as the property has not improved since the last reassessment.