Questions and Answers about the Point of Sale Tax
Q. What is the point of sale tax?
A. A recent South Carolina law---known as point of sale---allows local governments to dramatically increase property taxes on homes, land and businesses when they are sold.
Q. Does everyone pay the same property taxes for the same house in a neighborhood?
A. No. Families living next to each other in the identical house could pay different taxes for the same services. This flawed law is unfair, and is hurting our economy.
Q. Is point of sale good for job creation?
A. No. In a tough economy, the last thing we need are taxes that eliminate jobs, and prevent new businesses from opening in South Carolina. Businesses would pay higher taxes if they relocate to South Carolina.
Q. Is there any requirement how local governments spend point of sale tax revenue?
A. No. Local governments can spend the money they collect any way they want, without any requirements about how it is used. For example:
- Mauldin decides to give raise to all city employees
- SC Bureaucrats Aren’t Hurting
- LETTER TO THE EDITOR: Fed up with backdoor tax increases
- County, school board to hire law firm to lobby for state funding change
- Council Adopts 2010 Budget (story about City of Charleston’s budget which has a fee increase on heating bills)
Q. Does point of sale help people realize the dream of homeownership?
A. No. Housing affordability is critical to South Carolina’s exceptional quality of life. Taxing homes at a higher rate when they are sold will impact affordability---hurting young families who are struggling to purchase their first home.
