Vote ‘yes’ to take
farm tax provision out of constitution
ONE OF THE HALLMARKS of South Carolina’s constitution is that it
is packed with detailed provisions better suited to statutory law
than to such a binding document. The result, from time to time, is
that questions on obscure topics show up on the election ballot.
This coming Tuesday will be one of those times.
Currently, individuals and corporations with 10 or fewer
shareholders pay a third less in taxes on agricultural property than
what is charged on other undeveloped land. Some legislators think
the break should be extended to companies with as many as 75
shareholders, because that’s a generally accepted threshold between
small companies and what we usually think of as “corporations.”
But the 10-shareholder limit is one of those items that is
written into the state constitution, so the Legislature can’t change
it unless voters remove it from the constitution. That is what
Statewide Question 2 on the Nov. 2 ballot asks them to do.
Frankly, the world won’t end no matter how this issue is
resolved.
On the plus side, lifting the limit on the tax break might help
some second- or third-generation families keep their farms in the
family by allowing them to keep paying the discounted tax rate even
as the number of family members who own the land grows. It also
could make it easier for large companies to purchase farmland, and
some would see that as an advantage because it could drive up prices
— and, as a result, tax collections — on nearby land.
Of course, many would see that second point as a negative:
Driving up the value of nearby land could make it impossible for
some families to keep their land. In the same vein, it’s possible
that by keeping taxes high for corporations, the 10-shareholder rule
serves to discourage them from buying up farmland and hastening the
decline of the family farm. Beyond that, eliminating the limit would
certainly increase the amount of land that receives the tax break.
That might well force counties either to make do with less money to
pay for police and fire protection, schools and other local
services, or else to raise taxes on everybody else to make up for
the loss.
However, while we have not yet concluded whether the state would
be better off with or without the current limit on the tax break, we
believe voters should say “yes” to this question, simply because
this matter should not be in the constitution. Constitutions should
be broad statements of principle that lay out the foundation of a
government and delineate essential rights. A constitution should
contain only those matters that are so essential to the orderly
functioning of society that we need to ensure that they cannot be
changed on a whim. The gulf is huge between the protection needed
for a given rate of taxation and the protection needed for, say, the
idea of three branches of government or the right to a trial by jury
or universal suffrage.
Changing the constitution won’t eliminate the 10-shareholder
limit; it will simply allow the Legislature to change it, as it
changes hundreds of other laws every year. If you think it would be
a bad idea to lift the limit, then you should by all means lobby
lawmakers to keep it in place. But don’t keep the limit in the state
constitution. It simply does not belong there. |