selling property in tega cay, 7% withholding tax? (Arial: for sale, real estate)

[cpricesatbch]

Hello! we moved to florida from tega cay sc a few years ago. We have now decided to list our property for sale. The listing agreement mentions a 7% withholding tax if we are not living in SC and not paying SC income tax. We have been paying SC property taxes for 7 years and not living there. Does anyone know what this is?

[DipDog3]

If a non-resident of South Carolina earns income during a tax year, The non-resident must file a non-residents income tax return with the South Carolina Dept. of Revenue. This requirement applies to non-residents who earn income in the State of South Carolina as a result of a real estate sale.

South Carolina law requires a withholding at the time of closing of a percentage of the gain on the sale of real estate and that estimated withholding be forwarded to the South Carolina Department of Revenue. The required withholding is seven percent (7%) of the amount of the gain for individuals. The withholding at the time of closing only applies to non-residents of South Carolina. If you are a South Carolina resident there will be no withholding.

http://www.sctax.org/NR/rdonlyres/30.../I29071404.pdf