The point of sale tax exemption failed on a final vote 27-13 in the South Carolina Wednesday afternoon. It needed 31 votes to pass. Oconee County Republican Thomas Alexander said that the latest compromise between the SC Association of Realtors and the Association of Counties was reached Tuesday morning. A previous compromise fell apart. The measure now goes back to committee.
For the current year, those properties would be taxed at their current level. For other years, the taxable value would reduce by 20 percent from the purchase price. The legislation would eliminate additional taxes at the point of sale on second homes, businesses and commercial real estate for any sales this year. Local governments stand to loose millions because of the change. The compromise amendment was created to correct a problem that realtors say exists in Act 388, passed several years ago, which stipulated that properties would be reassessed when they were sold. That put higher taxes on buyers of second homes and businesses, all taxed at six percent.