South Carolina legislators are pushing a new law through that will allow home owners the availability to rent their primary residences as vacation rentals for up to 72 days from the current 14, without effecting their primary status. This means that home owners may elect to have their properties work more efficiently for them and earn their keep in offsetting ownership costs without having to worry about losing their 4% ratio and additional tax breaks.
A similar law was proposed several years ago, but was not successful getting passed. Now the law is coasting through with unanimous approval for vacation homes.
The County Assessor estimates that just under 500 homes will benefit from this plan and that about $1 million a year will be lost in tax revenue, according to the Post and Courier. However, what is not being stated is how this incentive will boost home sales in vacation areas around the Lowcountry, which will, in turn, provide a return in tax revenue to the state.
So, who wins with this program? Just about everybody. Homeowners will be able to better offset expenses, while home sales will boost the economy, aiding restaurants, retail, construction, and every other facet that benefits from a strong home market.
Good job S.C. Lawmakers!
-Brian Caldwell 843.224.7948 bcaldwell@dunesproperties.com