Harvey Peeler

Columbia, SC – June 2, 2011 – A compromise was reached Thursday to repeal the point-of-sale tax provision of Act 388. For months, business groups — led by state Realtors — have been trying to end a tax that has unreasonably burdened both businesses and individuals. Counties and municipalities fought the effort, but in the end consented to language that resulted in the bill being passed out of the Senate on the last day of session.

“I had every confidence that an agreement could be made, and now we can go about our state’s economic recovery,” said Sen. Paul Campbell, one of the bill’s top supporters. “The tax is inherently unfair and deserves to go.”

Earlier in the week, the two sides sat down for a meeting with Senate Finance Committee chairman Hugh Leatherman. After several hours of back-and-forth talks throughout the week, the two sides put aside enough of their differences to fashion a proposal that would pass without issue.

“It’s good to see the two sides in this debate come together for sensible tax reform to enhance business opportunities in the state,” Leatherman said.

Applying to properties that are currently taxed at six percent of their value, the legislation would lead to taxing the property at a 25 percent discount of the fair market value. For instance, if a property was evaluated at $125,000, it would be taxed at $100,000.

“Point-of-sale has been a very contentious issue, and I’m happy to see cooler heads prevail,” Senate Majority Leader Harvey Peeler said.

The bill will return to the House for a vote on accepting or rejecting the new language.