MYRTLE BEACH — The Horry County Auditor’s Office is wanting rental property owners, and even those who rent their legal residences out, to come forward and properly claim the furniture for proper tax collection. Current state law says if a property owner has an “intent” to rent his or her property, the owner is required to file a (personal) property return on furniture, appliances and equipment… the auditor’s office is legally allowed to seek payment from the current tax year and five years prior, which is what it intends to do. -Jason M. Rodriguez at MyrtleBeachOnline.com
Myrtle Beach Taxing “Personal Property” in Vacation Rentals
As the great Benjamin Franklin once said, “The only things certain in life are death and taxes.” But taxing previously purchased furniture and appliances that you’ve already paid sales tax on??? I don’t think even Big Ben Franklin could have seen this one coming. I mean its ludicrous right? Yet recent statements from the Horry County Auditor’s Office indicate this is exactly what they intend to do to Myrtle Beach rental property owners.
According to South Carolina Legislature Code of Laws, Title 12, Chapter 37, Section 12-37-710, the state of South Carolina has the right to tax individuals on all “Personal Property” contained within any “Real Property”.
In order to better grasp the implications of this, it is important to first understand how the South Carolina government defines “Real Property” and “Personal Property” with respect to the assessment of property taxes.
What is “Real Property”
Real Property is defined as “all things, other than real estate, which have any pecuniary value, and moneys, credits, investments in bonds, stocks, joint-stock companies or otherwise…”
What is “Personal Property”
Personal Property is defined as “not only land, city, town and village lots but also all structures and other things therein contained or annexed or attached thereto which pass to the vendee by the conveyance of the land or lot…”
Confused still? Yeah, me too. Essentially this means any real estate owner in the State of South Carolina intending to rent their property MUST file a tax return for all “Personal Property” contained within their “Real Property”. This law also applies to real estate owners intending to temporarily or seasonally rent their “owner occupied” or primary residence.
In layman terms this means home owners must claim, and thus pay taxes on, anything within a rental property that has value, and will be in a renter’s temporary possession during their stay. So your grills, couches, stoves, and yes even the kitchen sink, must have yearly taxes paid on them.
To me this is nothing short of highway robbery. Need more income Uncle Sam? Quit spending money on Stupid Sh@#!