Local governments
should be free to restrict billboards
SOUTH CAROLINIANS have worked hard in recent years to clean up
all the trash that is strewn along our highways, even going so far
as to create a state “litter czar,” as part of an effort to make our
state more attractive to visitors and residents alike.
But the litter on the side of the road isn’t the only thing that
mars the scenery: South Carolina has more billboards per mile than
any other state. And some legislators are determined to make sure we
retain that dubious title.
Again this year, billboard companies are backing legislation that
would quash local governments’ nascent efforts to rein in
billboards.
Cities and counties that restrict where billboards can be placed
already have to give owners several years to remove existing signs —
enough time to recoup their costs, and make a profit. As a result,
most communities, like ours, already let existing billboards stay in
place.
A bill that goes before the House Labor, Commerce and Industry
Committee Tuesday would pretty much guarantee that this never
changes. It would force local governments to pay outrageous levels
of compensation to billboard owners if their signs are removed. The
S.C. Municipal Association estimates the cost could be as high as
$300,000 to $400,000 per billboard.
Even if you buy the argument that the government should have to
shell out cash to close down billboards, the formula billboard
owners are proposing is ridiculous. When the state Department of
Transportation removes billboards to make way for road construction,
it pays the owners, based on the cost of the billboard itself. The
bill in the House — which specifically exempts the Transportation
Department — would require cities and counties not only to pay the
cost of the billboard, but also to pay what billboard owners would
lose by not being able to rent out their billboard space, possibly
for as much as 20 years.
That proposal is even worse than it sounds, because billboard
companies don’t pay property taxes based on how much money the signs
generate; they are taxed based on their capital outlay, minus
depreciation. Municipal officials go so far as to say that they
would be willing to reimburse billboard owners, based on the taxable
value of their billboards. That could mean using the current “cost
minus depreciation method” for both, or changing the taxing method
to the “value of use” formula, and also using that to reimburse
owners for any signs that are forced down. But two years ago,
billboard companies rejected the first offer; we doubt they’d be any
more receptive to the other one.
Even if the companies did agree, though, the Legislature
shouldn’t approve either compromise; it should simply drop this
whole idea.
In the first place, we see no reason to change the current method
of letting owners keep their outlawed billboards up long enough to
recoup their costs. Sex clubs, mobile home parks and junkyards don’t
get reimbursed when they’re zoned out of existence. There’s even
less reason to reimburse billboards, which have no independent
value: They would be worthless if it weren’t for government-built
and -maintained roads.
Beyond that, whether or how communities reimburse billboard
companies, or any other business that is adversely affected by
zoning decisions, is a purely local decision. As such, it should be
made by local officials. The Legislature has no business
interfering. |