Impact fees enter tax reform debate
Fast-growing areas would benefit
Published Sunday January 22 2006
In his fourth State of the State address Wednesday night, Gov. Mark Sanford painted with a broad brush, but his strokes about growth, taxes and who pays for services were particularly meaningful to Lowcountry residents.

A day earlier, Beaufort County Council members were in the State Capitol lobbying for legislation to expand the local government's ability to place more of the financial burden on the shoulder of newcomers. County Council Chairman Weston Newton said the group lobbied for municipal real estate impact fees and as school impact fees.

Council members and the governor are correct. Municipal and county officials should have the opportunity to raise development and impact fees at least to the national average so that those who benefit from growth pay a greater share.

Sanford's ideas for impact fees were part of his call for an assessment of an broad spectrum of taxes, but they struck a chord with Beaufort County residents, who live in the one of the fastest-growing counties.

He champions some "bottom up" plans, giving local government's options "to look ... at what is causing real estate taxes to rise, and impact those root causes driving our property taxes upward."

The governor points what has been obvious to many locals for a long time: Growth doesn't pay for itself. "That means when 1,000 new folks move from Ohio or New Jersey ... people who have have been living in this state for years or generations have to pay for the new school ... ."

Residents of high-growth areas fight growth, and the battle is driven by "who pays" -- those who have paid already or the people arriving? Sanford also pointed out that the impact fees allowed don't achieve much because lawmakers have severely restricted their use.

Impact fees were a small element of the broad discussion of taxes that should take place in the General Assembly this year. The governor touched on:

  • Swapping of sales taxes for property taxes;

  • That a sales tax swap should be more comprehensive than one or two cents;

  • The impact that the tax structure will have on the business climate; and

  • Limiting local spending as part of a tax swap.

    The debate is just beginning. The hope is that it will be a comprehensive discussion and that impact fees will be a major part of it.

  • Copyright 2006 The Beaufort Gazette • May not be republished in any form without the express written permission of the publisher.