EDITORIAL
Property Taxes Hard
to 'Repair' Local legislative hearings
great, but changing the law is a huge
challenge
Aggrieved local property owners are sure to share their
unhappiness about real estate taxes at hearings next month to be
hosted by two local members of an S.C. House special taxation
committee. These folks object that the rising market values of their
homes fattened their tax bills after last year's property
reappraisal.
They no doubt will tell the legislators - Reps. Tracy Edge,
R-North Myrtle Beach, and Vida Miller, D-Pawleys Island - that the
General Assembly must - must - lift this added burden off their
shoulders. But in the end, we fear, neither legislator will be able
do much to ease these good folks' pain.
The state's tax system is grounded in the constitutional
principle that taxes should apply uniformly to all taxpayers. That's
why the market value of a given property is tied to its tax value:
Folks who own highly valued property should pay higher taxes than
folks whose property is worth less.
If you hold the owners of fast-appreciating property harmless
from higher tax bills, as some legislators propose, you're
transferring the tax burden they're no longer carrying to all other
property owners. Municipal and county councils, as well as local
school boards, set their tax rates at whatever level is required to
bring in the tax revenue they need to operate their governments. If
some property owners don't pay as much as they should, other
property owners pay more.
Some legislators think the answer to easing the pain of the
aggrieved lies in a constitutional amendment making property
taxation just a little bit nonuniform. Perhaps, they think, it would
be OK to bar S.C. counties from reappraising property until the
owner sells it. Not so. Such a change could mean that someone who's
lived in a house for years would pay much lower property taxes than
his neighbor who just moved in to an identical house next door.
Labeling disparate tax burdens "constitutional" wouldn't make them
fair.
Still another idea circulating among Columbia savants is
ratcheting down - or even eliminating - property taxes while raising
the sales tax to make up for the lost revenue. Bad idea.
This state applies the sales tax to food, which everyone, rich
and poor, must have. Under this scenario, the poor would end up
paying proportionally higher taxes than middle- and upper-class
earners - again, not fair.
Legislators could correct that problem by exempting life's
necessities from the sales tax, but that would reduce the revenue
the tax brings in, requiring legislators to raise sales tax rates to
make up for what is lost. That, in turn, would make the sales tax
into punishment of consumption - a bad idea in a state that stakes
its economic health on tourism. It's foolish to discourage visitors
from spending money while they're here.
None of this is to suggest that the Miller and Edge hearings next
month are exercises in futility, only that fixing what some folks
perceive to be wrong would create new inequities. S.C. legislators
know this, which is why we continue to suspect that their motivation
in investigating this issue has more to do with politicking than
with improving public policy.
Hearings' times and places
Miller is hosting a property tax hearing at 5:30 p.m. Tuesday in
the main courtroom of the Georgetown County Courthouse. Edge will
host a hearing in North Myrtle Beach City Hall, with the time and
date to be
announced. |