COLUMBIA, S.C. (AP) – South Carolina legislators are being told a 2006 law passed as property tax relief has resulted in exorbitant tax bills on small businesses and rental property, while short-changing fast-growing school districts.
Most of the people testifying Tuesday before a House tax study committee said that law must change.
The law’s penny-on-the-dollar increase in the state sales tax was supposed to pay for tax cuts benefiting owner-occupied homes. But that additional penny has never generated enough to fully fund the relief, requiring taxpayers to cover the difference through the state budget.
David Phillips with South Carolina Realtors says people owning second homes or rental properties are paying three times more in property taxes than similar owner-occupied homes in the same neighborhood.
Phillips says that discourages home sales while hurting renters.