Point of Sale law when you purchase a home (for sale, house)

[TootsieWootsie]

Can someone explain this Point of Sale law? I read about it on retirementliving.com, but just cannot understand WHY it would scare people off?
Doesn't the State of Washington have something similar: say, you pay $1,000 in property tax, but I then purchase your home and they reassess the tax and I pay $3,000. Then I sell the home 10 years later to someone else, and that person ends up paying $5,000 property tax.
What am I not getting about this concept??????

[JN5147]

The issue is the huge inequities which are created by the point of sale assessment. If I purchase a property for $400,000, I will pay property taxes on the $400,000. My neighbor, with an identical property who is assessed at $200,000, will pay taxes based on the $200,000. My property taxes are 100% higher that theirs for the same properties. In addition, the law limits their assessment increase to 15% every 5 years, so their assessment will only go up to $230,000. My could also possibly go up 15%. In addition, if I try to sell my house and theirs is also for sale, which one would you buy? I know that in 2 years they would be assessed at the purchase price but they may not know that and my assessment would definitely hurt any potential sale.

[creekgirl4life]

Fortunately the House has been working on a bill that would address some of the inequities. Get Real SC has information that might help.

[JN5147]

Unfortunately there is very little chance that the House or Senate bill will pass. The Counties that have benefitted the most from the Point of Sale assessments would have to take a 'tax cut' and that is not going to happen in this economy.