South Carolina State Rep. Leon Stavrinakis (D-Charleston) wants to jump-start the construction industry in South Carolina. To that end, he has pre-filed a bill that would allow individuals and companies to write off 100 percent of any profits from real estate deals on their taxes.
Stavrinakis says the real estate drag is a big problem in South Carolina in terms of creating jobs and sustaining economic vitality in communities across the state. Stavrinakis is confident his measure would help.
“I believe strongly that doing something about the capital gains tax will give people an incentive to re-look at real estate in terms of investment and development,” he told South Carolina Radio Network.
Stavrinakis says sustaining existing positions and creating new ones in real estate in South Carolina, both in the commercial and residential markets, would help revive the state’s overall economy. Lawmakers have heard for years that something needed to be done to aid the commercial a real estate market hit hard by the recession and the law known as Act 388.
Act 388 exempted owner-occupied homes from taxes related to public school operations and raised the sales tax 1 percent, except for groceries, to make up the difference.
Stavrinakis says his measure would likely hurt state revenues for the short term, but would ultimately be beneficial in the long run by stimulating investment and growth in the state’s real estate market.
“Construction was a huge industry in South Carolina prior to the recession,” he said, “The part of the economy that seems to be having the hardest time recovering is the real estate market.”
AUDIO: Stavrinakis says South Carolina’s real estate market needs a boost