South Carolina is on the verge of implementing a new $500 “Yankee Tax” on new residents who move to the state with a car they intend to drive around. The South Carolina Senate Finance Committee approved the bill, which will be voted on soon on the Senate floor. It’s widely expected to receive the go-ahead, which means a new resident will have to pay a $500 once-off fee for a driver’s license and vehicle registration.
This new tax has an interesting backstory and directly results from the 2020 COVID-19 pandemic. Because the world effectively shut down, remote working became an acceptable norm. Pre-shutdown, certain workers were physically tied to large economic hubs like New York, Los Angeles, and Chicago.
Thanks to remote working now being an option for many, people are moving away from these hubs to enjoy the benefits of living in a prettier state with lower taxes, more affordable parking rates, and much cheaper houses, not to mention a more satisfying quality of life.