South Carolina Builders Get a Tax Break for Unsold Homes
A recent article in Charleston SC’s local paper, The Post and Courier, really caught my eye. The headline read, “Builders with unsold houses get tax break.” With bills like this being passed, we may just recover from the current housing market. Where a huge influx of new construction can be detrimental to an economy if the numbers are not there to support the growth, builders and new community growth can also be the lifeline to a community. A community experiencing new developments has room to grow and it aids in stimulating the economy. Protecting our builders and investors can be vital to help stabilize our Charleston real estate market.
Yes, the government is much to blame for our current market, but it is nice to see them trying to fix their mistakes: the first time home buyer’s tax credit, loan modifications, and now this tax exemption protecting our builders. The exemption is expected to cost about $1.5 million statewide. In my opinion, a cost well spent.
Builders with unsold houses get tax break
Exemption expected to cost about $1.5 million statewide
“HOLLYWOOD — Charleston contractor Chuck Bennett was frustrated with paying more than $16,000 a year in property taxes on two houses he built here but could not sell, so he set out to change the law.
Homebuilder Chuck Bennett explains how the empty house behind him was the catalyst for a law exempting unoccupied finished houses from property taxes.
And he succeeded.
Beginning this fall, a developer or a contractor like Bennett who has completed a new detached, single-family home that has not been sold or rented no longer must pay taxes on the home. They still must pay taxes on the land, however.
Bennett figures he will save about $7,000 on a four-bedroom, four-bath home he completed in 2006 but which has remained on the market even though the asking price has dropped from $1 million to $635,000.
Bennett said the new break is fair because the unoccupied houses place little or no demand on local governments, which rely on property tax revenue. “I’m just writing a check for nothing,” he said. ” Click here to read the full article.
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Drew Sineath – A Familiar Face…And a Rich Lowcountry Heritage Drew Sineath & Associates, Inc., is located in the heart of Goose Creek where Drew grew up and where he has chosen to rear his own family. Berkeley County is one of the fastest growing areas in South Carolina and Drew is pleased to be able to serve his clients in helping with all their real estate and mortgage needs. So when you have any real estate needs, whether you’re looking to buy, sell, finance or refinance, Drew Sineath & Associates is now a local one-stop location with excellent service.
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Tags: builders tax credit, Charleston SC, chuck bennett, hollywood sc, the post and courier