Horry County is fighting a proposal that would cap increases in property values during reassessment, a move local leaders say would cut property taxes for oceanfront landowners and force other residents to make up the difference.

The proposal would cap increases in property values at 20 percent during reassessment years, which occur every five years. During reassessment, officials update the tax rolls to reflect current property values. Without the added revenue from those properties, officials say they would have no choice but to charge other taxpayers more.

During this year's reassessment, Horry County property values went up an average of 17 percent. Roughly a quarter of the county's properties - mostly oceanfront - went up by 25 percent or more, according to Horry County Assessor Rendel Mincey. New homes and additions would be exempt from the cap.

Horry County Council endorsed a resolution opposing the bill Tuesday. According to county estimates, the bill would shift nearly $4 million in taxes. The S.C. Association of Counties and the eight other counties undergoing reassessment this year, including Georgetown County, also are fighting the bill. "It's a dreadful bill," said council Chairwoman Liz Gilland. "It's just not fair."

The bill was passed by lawmakers and now awaits a signature or veto from Gov. Mark Sanford.

Proponents of the bill say it would protect homeowners who struggle to pay sudden drastic increases in property values. "Some people are literally being taxed out of their property, out of their homesteads," said S.C. Rep. Vida Miller, D-Pawleys Island, a sponsor of the bill. Vida initially proposed a 15 percent increase, which the S.C. Senate changed to 20 percent.

Local governments periodically adjust their tax rolls by updating property values. Officials say reassessment ensures that all property owners pay taxes for the true value of their property and not an outdated value from five years ago. The Horry County assessor and representatives from other S.C. counties currently undergoing reassessment are in Columbia today to discuss what happens if the bill is signed into law.

Sanford has until January to sign the bill. But Horry County sends out its tax bills in October. If Sanford approves the legislation, Horry County would have to send out rebates to affected properties and figure out a way to shift the tax burden to the other properties to keep its budget stable.

"You will have inequities throughout the county," Mincey said.

Most County Council members oppose the bill, saying it is an attack on local government's ability to collect taxes and an unfair redistribution of the tax burden.

Councilman Marion Foxworth said it's part of a pattern of tax changes that have relieved the burden on the wealthy at the expense of the middle class and poor. Foxworth has opposed earlier attempts to reduce the tax on airplanes, boats and golf courses. "We're seeing examples of this all across the board," he said Tuesday. "It's a shift that I'm just not comfortable with."

Councilman Mark Lazarus said he wants to hear more before condemning the bill. Lazarus represents a beachfront district that includes northern Myrtle Beach. He voted for the council resolution Tuesday night, but said that's because state lawmakers didn't study how the change would affect local governments.

Miller, the bill's sponsor, said she understands Horry County's concerns and hopes to minimize any shift of tax burden with a bill that would adjust a property owner's taxes by their income. If signed by Sanford, the reassessment cap will likely be challenged in court. Richland County, one of the eight other counties undergoing reassessment this year, has retained an attorney.