Remarks By Governor David M. Beasley

Property Tax Bills news conference

September 26, 1995

Over the next few weeks, residential property tax notices will make their way to mail boxes across the state. This year, there will be a difference.

When you get your property tax notice this year, you will see your share of the largest tax cut in South Carolina history.

Your share represents spending cuts that I called for in state government and the fact that more South Carolinians are working at better paying jobs.

In other words, the impact of less government and a strong economy will be clear the moment you open your mail.

We fought those who wanted to raise taxes. As a result, 89 percent of South Carolina's homes are now exempt from school operating taxes.

I would remind you that this is on top of the 20 thousand dollar homestead exemption that those 65 and older already get.

And I know Buddy and Julia Stork, who've graciously opened their home to us today, are happy to know that!

Buddy is a World War Two veteran who was lucky to make it back home. He and Julia have worked hard all their lives, and finally paid off the mortgage on their house.

But it was little comfort to watch their property taxes go higher and higher, especially in retirement when monthly income might be fixed.

Buddy pointed out once that he didn't feel like he owned his home...even after the mortgage was paid off. He still had to pay higher and higher taxes and felt like he was just renting it from the government.

As you can see from the Stork's tax bill, his liability this year would have been 713-dollars-47-cents on his house which appraises at 64 thousand dollars. But when he takes his homestead exemption and the property tax cut, his total tax bill is reduced by 488 dollars...more than 40 dollars a month.

And if you don't think this kind of reduction can make a difference, let me introduce you to Vance and Carolyn Strickland. They just bought their first home.

It's a 77-thousand dollar home over in the Shandon area.

They would have paid nearly 11 hundred dollars in residential property taxes this year, but the tax cut reduces their bill to about 670 dollars.

As you can see by their bill, this reduction will reduce monthly mortgage payments by more than 35 dollars.

These reductions put the dream of home ownership within reach for many young couples.

Sometimes young couples are denied a loan because the payment is just out of reach for them. In a lot of cases, these reductions will mean loan approval.

Think of it this way: a 30 or 40 or 50 dollar savings each month represents payments on a refrigerator or a washer/dryer or perhaps clothes and a crib for a new baby.

Taxpayers are the ultimate beneficiaries, but consider the boost to our home-building and real estate industries.

When you put money back into the economy, as we've done with this tax decrease, you stimulate other segments of the economy...and taxpayers eventually see even more returns from those segments.

If you haven't gotten your notice in your county yet, here's how you can get an idea of your savings.

Take the fair market value of your home (up to 100 thousand dollars) and multiply it by point-zero-four (which is the assessment rate). Multiply the answer by the school operating millage for your district, and that will be the total for your property tax relief.

I want to take a moment to mention a couple of other aspects of the property tax relief bill that will have an impact on taxpayers.

Reassessments, which are currently done every ten years, will now be done every fourth year. Any increase in the value of your home will be a lot easier to take with assessments done over a shorter period of time.

And if there's a problem with your tax bill, you'll have an easier time getting a refund or adjustment.

Property tax notices are being standardized from county to county, which will make it easier for you to compare tax rates with your friends in neighboring counties.

I might also point out that you should send a copy of your tax bill to your mortgage company and prompt them to reduce your monthly house payment by the amount of your tax cut. These things don't always occur automatically. I come from a banking background and I know how lenders like to hang on to every dime they can. So, your reminder will help reduce your monthly payment more quickly.

As you know, this reduction in property taxes is a not a reduction in education spending. The money will be returned to your school district on a dollar for dollar basis...with no mandates from state government...to ensure that there's no loss of education funding in your child's school.

We're going to keep up the pressure to put an end to this tax and spend mentality that has been pervasive in government. And your property tax bill this year reflects the new attitude we're bringing to the process of governing.

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