Myrtle Beach Chamber of Commerce discusses point of sale law

Adva Saldingera

Nov. 7, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- The Myrtle Beach Chamber of Commerce's legislative policy council discussed point-of-sale legislation at its meeting on Friday.

The bill would revise a 2006 property tax law that required properties to be reassessed at fair market value when they change hands. The bill has resulted in a reduction in sales as new owners or potential buyers face much higher tax bills than the former owners, according to Tom Maeser, a research economist for the Coastal Carolinas Association of Realtors, who spoke at the meeting.

The bill would cap the increase in fair market value at 15 percent at the time of the sale and is supported by the association.

Maeser and Steven Neeves, the government affairs director of the association, gave a presentation to the group about the damage the law has had on the business community, Neeves said.

"It's all about competitiveness," he said. "We are in competition with North Carolina, Virginia and Georgia, and having a tax system that isn't abrasive as it is right now makes all the difference in the world."

Neeves and others in the room said they would prefer a complete repeal of the 2006 legislation.

The legislation was designed to reduce taxes for permanent residents and cap increases to their taxes.

Mark Kelley, a lobbyist for the chamber, said the result is that businesses and investors, which have to pay higher taxes, including educational operating expenses, are disproportionately burdened. About 66 percent of properties on the Grand Strand are subject to the higher taxes.

Kelley said that as taxes drop, the county will, in turn, tax those businesses and investors to raise the money it needs.

"It is about making not just Horry County but South Carolina the best place to do business and come to invest," said Rep. Alan Clemmons, who attended the meeting. "Quite frankly, if we don't fix this problem, we are going to see more and more drift off to neighboring states."

He said that the point-of-sale bill is not the ultimate fix to the problem, but a temporary measure that should be put into place until a permanent solution, like the repeal of 2006 legislation, can be achieved.

Contact ADVA SALDINGER at 626-0317.

Newstex ID: KRTB-0119-39531209