There is little relief on many Lexington County tax bills this
year — and many residents are wondering why the penny sales tax they
approved last year hasn’t helped.
Oak Grove resident Virginia Harmon saw a $660 increase in her tax
bill. Her assessment increased 31 percent, while her tax bill jumped
28 percent.
“How is it possible?” she asked. “I don’t really understand it. I
really don’t.
“I just might as well get a pup tent and forget it. I don’t mean
to make light, but it is of grave concern to me.”
But in Richland County, the penny sales tax has taken a bite out
of property tax increases. Those who live in municipalities
including Columbia, Irmo and Blythewood will see the most benefit
because the law weights city and town residents more when allotting
a portion of the tax relief.
Tax bills will begin arriving in Richland County this week.
Both counties have collected the sales tax for less than half a
year.
Lexington estimates it will collect about $26 million a year from
the sales tax. Richland said the tax will bring in $65 million to
$70 million.
The additional money in Richland means some residents, including
those in Columbia, could have property tax bills that decrease or
increase only slightly despite 20 percent to 40 percent increases in
a home’s assessed value.
For example, the assessed value of one home in Columbia increased
to $219,500 from $151,900 — a 45 percent increase. But the tax bill
increased only 8 percent to $2,502.
That home received $791 in sales tax relief.
Residents in Richland 2 and other unincorporated areas of the
county will receive less relief, and tax bills will more closely
match reassessments.
Two towns, Irmo and Blythewood, eliminated their town taxes
through the sales tax credit.
That’s good news to the many Richland residents who were outraged
at property value increases last year.
“That is a noticeable difference,” said Richland County auditor
Harry Huntley of the sales tax’s effect. “I think people are going
to be shocked at how little the increase is.”
‘UNFORTUNATELY, THE MARKET IS VERY GOOD’
At Lexington County offices last week, the shock was from higher
bills. Phones were frequently busy at the county auditor’s
office.
Harmon and others whose tax bills have increased significantly
have been affected primarily by two factors: a hot real estate
market and the county’s aim to better gauge home prices.
Lexington County assessor Rick Dolan has just completed his first
reassessment for the county. The result of that reassessment, he
said, has been that there are fewer homes whose values are much less
than market price.
“We did a very good job of studying the market,” he said, “and,
unfortunately, the market is very good in Lexington. The downside
(of accuracy) is that some people are seeing whopper tax bills.”
In theory, the more accurately the county values homes, the more
residents pay their proportionate share of taxes.
County officials say the accuracy is apparent when comparing
older and newer homes in Lexington.
Here, they say, is how it breaks down:
• Tax decreases: In some
newer areas, such as the subdivisions off Platt Springs Road or in
the town of Lexington, tax bills decreased. One homeowner on
Siddington Way, for example, will pay $55 less in taxes this
year.
• Tax increases: Around
Lake Murray, the booming real estate market has caused many homes to
more than double in value over the past five years. Many taxpayers
on the lake will pay $2,000 or more in additional taxes.
• Seniors: Those receiving
the homestead exemption in both counties don’t benefit as much from
the sales tax because the $50,000 exemption is subtracted from the
home value before tax relief is calculated.
Oak Grove resident Betty Mathis, 80, saw her tax bill double, a
$600 jump that leapfrogged her home’s reassessment because less of
her home is exempted from taxes.
“I’m disgusted,” Mathis said. “It’s impossible for this property
to go up to $172,000. There hasn’t been that much change in this
area.”
Other Lexington residents, spared large increases, were grateful
for any property tax relief because of the sales tax increase.
“My bill did not go up that much, so I was very pleased,” West
Columbia resident Kathy Mackintosh said. “I was very nervous.”
Reach O’Connor at (803) 771-8435 or johnoconnor@thestate.com.
