Study finds fault with tax bill

A bill that is intended to provide property tax relief, and which awaits Gov. Mark Sanford’s signature, instead would hurt businesses and people with homes that aren’t rapidly increasing in value, according to a study commissioned by the S.C. Chamber of Commerce.

The chamber opposes the bill before Sanford. At the end of the last legislative session in June, lawmakers approved the bill, which would cap the growth in property values during reassessments at 20 percent.

Sanford has been considering whether to sign or veto the measure since then. Spokesman Will Folks said the governor has looked at the chamber study, which he received last week, but hasn’t made up his mind.

The study, done by Miley & Associates Inc., was released to the media Wednesday.

Miley & Associates analyzed data from seven of the nine counties undergoing reassessment now, including Richland. It found capping property tax reassessments would give a break to taxpayers whose property is rapidly increasing in value.

As a result, a greater proportion of the burden of paying for local government would fall on taxpayers whose property increases in value less than 20 percent. That could mean tax increases as high as 50 mills for all taxpayers, according to the study.

“Counties must collect the same amount of total taxes after reassessment as they did before, so if some properties with rapidly increasing values are exempted, the money must be made up elsewhere,” chamber chief executive Hunter Howard said.

That means homeowners of less expensive property, small businesses and manufacturers, mom-and-pop retailers, and many landowners will subsidize those who benefit from the cap, Howard said.

Folks said Sanford has been contacted by many groups for and against the tax cap.

State House members approved the tax cap overwhelmingly to help taxpayers having trouble with rapidly increasing property taxes.

“We’re all concerned about the rise in property taxes,” said S.C. House Speaker David Wilkins, R-Greenville, who had not seen the study.

Bill sponsor Rep. Vida Miller, D-Georgetown, said she was not surprised the chamber study would consider the plan a bad idea.

“They’re looking at their commercial rates, and folks have had a pretty good deal with the commercial rates. The tax shift has been to the homeowner over the last eight to 10 years.”

Miller believes it is past time for the governor to act.

“Just move on with it,” she said

If Sanford signs the bill into law, Miller expects the chamber and other groups will take the issue to court. Perhaps that is what is needed, she said. “Let the courts make a decision.”

Added Miller: “If my friends at the chamber have a better idea, please, I would love from them to put it on the table.”

Reach Talhelm at (803) 771-8339 or jtalhelm@thestate.com. Staff Writer Aaron Gould Sheinin contributed to this report.