Hilton Head Island Mayor Tom Peeples,
in a letter sent to two state senators Thursday, derided the idea of
property tax caps, chastised state officials for their handling of local
issues and asked the state to raise the sales tax to pay for schools.
Peeples sent the seven-page letter to the two state senators
enumerating the Town Council's concerns about any attempts to change the
state's property tax system, with issues ranging from the need for better
state education funding to better cooperation among elected
officials.
"Each penny of the current state sales
tax was imposed to fund education, but prior (l)egislatures have raided
these funds," he wrote. "The additional sales tax needs to be put in a
'lock box' for public education."
He also said imposing property tax caps may have "unintended
consequences," such as benefiting wealthy investors instead of long-term
residents.
Peeples sent the letter to Sens. Glenn McConnell, R-Charleston, and
Hugh Leatherman, R-Florence, because he was unable to attend a public
hearing Thursday in North Charleston. It reiterates some of the council's
frequent criticism that state officials shrug off too much financial
responsibility onto municipal governments.
The state legislators are holding a series of public meetings to hear
from constituents about how to reform the property tax system in the
state. Some residents have seen their bills skyrocket in recent years as
property values shot up, particularly in the state's coastal areas. Ideas
have ranged from imposing a cap on the amount of tax that can be collected
to completely throwing out the last reassessment and starting over.
Bluffton Mayor Hank Johnston said Bluffton was preparing some comments
to send to the officials holding the meetings. The comments will address
three of the town's major concerns and suggestions: changing to a
point-of-sale update to property tax values, adhering to inflationary
increases on all property that doesn't change hands and encouraging the
state to look at removing exemptions from the sales tax.
Removing exemptions -- which include newspapers, hearing aids and
prescription medicine -- as well as a $300 cap on the sale of automobiles,
would pump money into the system and make the state less reliant on
property taxes, Johnston said.
"They need to look at those types of issues and figure out how much
that would generate for schools ... and property tax relief," he said. "To
eliminate the exemptions that exist in South Carolina law now would
generate a huge amount of income for schools and roads."
County Council has several concerns and requests it has forwarded to
state legislators, including a resolution asking for the ability for
counties to reconsider doing reassessments more often than every five
years and a request to explore point-of-sale evaluations, Chairman Weston
Newton said.
One of the big requests involves doing away with the delay in getting
new properties on the tax rolls. That delay in paying taxes can stretch as
long as 23 months, Newton said. Getting rid of that delay would spread the
burden for things like schools and emergency services more evenly.
"It's fair and equitable for everyone to pay for the public services
that are required," he said. "Existing property owners are subsidizing the
public services needed for that growth."
Peeples' letter implores state legislators to work with -- not against
-- local officials to reform the system.
"You are hearing from certain constituents today," he wrote. "But who
will you be hearing from if all you do is make piecemeal
changes?"