The state Supreme Court struck down a state law Monday that allowed counties to cap increases in properties' taxable values.

The law, enacted in 2000, let each county council vote to cap increases in properties' taxable values at 15 percent. It was seen as a reaction to a spate of reassessments statewide in which property values were doubling and tripling.

In a 5-0 unsigned opinion, the court struck down the cap because each county could choose whether to apply it, while the state constitution requires statewide uniformity in assessment. Charleston is the only county that adopted the cap.

The case before the court did not address the issue of whether there can be a statewide limit on how much property values increase during a reassessment. Last year, the legislature approved a bill that would have capped increases statewide at 20 percent, but it was vetoed by Gov. Mark Sanford, who said the bill would violate the state constitution's requirement that tax assessments be based on fair market value.

One legislator said Monday's court ruling could breathe new life into this year's attempts to overhaul the state-mandated system of property assessments and taxes. But House Ways and Means Committee Chairman Bobby Harrell said any new law might be difficult to pass before the legislature adjourns June 2.

"It probably improves the chances of legislation being passed because we're back to square one in solving this problem," said the Charleston Republican. "Whether you can get it passed in the next two months or not, I don't know."

THE RULING

In July 2002, Charleston County Council voted to adopt the cap, after a court had struck down a limited version of the cap that the county had tried to implement. The city of North Charleston then sued to block the measure, saying it would unfairly burden city residents.

A special judge appointed by the Supreme Court later said the cap should be ruled unconstitutional, which the high court confirmed in its ruling Monday.

The city of North Charleston challenged the 15 percent cap Charleston County proposed because it would have "adversely affected 90 percent of our residents," said J. Brady Hair, an attorney who represented the city.

A cap helps people whose property values are increasing rapidly, but hurts others in the same county who pay a higher tax rate to compensate for others' below-market values, Hair said.

State law requires each county to reassess all properties once every five years to reflect fair market value, a process Beaufort County completed last year. Of parcels in Beaufort County that include land, 62 percent had their taxable values increase by more than 40 percent.

Beaufort County Council considered implementing the cap but decided to wait for the high court to rule. The county delayed reassessment -- which originally was supposed to take effect in 2003 -- until last year, hoping the court would rule in the meantime.

While County Council was waiting for the court's decision, a study from Clemson University concluded the cap would just shift the tax burden to people who own lower-valued properties.

NEW EFFORTS

Although Sanford thwarted their efforts last year, some state lawmakers are again trying to overhaul the property assessment and taxation system.

Rep. Richard Chalk, R-Hilton Head Island, is sponsoring a bill that would cap increases in actual tax payments at 15 percent. Local officials have worried that the bill could create a headache in setting a tax rate that would be applicable countywide under such a system.

Chalk said the court's ruling shouldn't affect the odds for his bill to become law, since his bill would take effect throughout the state.

Harrell said his staffers are researching whether Chalk's bill would be constitutional. If he thinks the bill is "constitutional and feasible," he will support it, he said. A subcommittee is expected to discuss various bills dealing with property taxes next week.

Rep. Bill Herbkersman, R-Bluffton, also is pushing a bill that would allow those counties that conducted reassessments last year -- including Beaufort -- to throw out the 2004 reassessment until the state adopts a new system. It's unclear how the court ruling would affect that bill, and Herbkersman could not be reached for comment Monday.