The five panelists agreed: Redoing the
state property tax system looks problematic for York County. Not one of
them predicted much benefit for local schools and government if the
Legislature makes good on its promise to revamp the property tax
structure this year.
About 150 people turned out Monday night for a public forum on the
issue. Representatives from the S.C. Municipal Association and
Association of Counties, the Palmetto Institute, the S.C. School Board
Association and the York County Regional Chamber of Commerce talked
about the proposals circulating in the state House and Senate that could
reduce or eliminate property taxes. The state sales tax would be raised
by 2 cents to make up the lost money.
Some big questions raised:
• Would the proposals be the death of Home Rule, the idea that local
governments should directly control their own operations?
The panelists and many local elected officials present said they were
alarmed by the idea of local taxes being sent to Columbia for officials
there to dole out.
The House proposal eventually would distribute the money based on
population, said Robert Croom of the Association of Counties.
"That would absolutely kill Tega Cay," Croom said, responding to
concerns from councilmen there about how the fast-growing city would be
able to provide the same level of service to its residents.
Leaders in the western part of the county echoed those worries.
"Our biggest concern is having to depend on the state," said Clover
Mayor Donnie Burris. "We don't have real good luck getting money from
them."
• Is there a better way to target tax relief to the people who really
need it?
The proposals are being driven by the sticker shock that comes from
waterfront homes' skyrocketing values, whether they be at the beach or
on Lake Wylie, Croom said. Every five to eight years, those homes get
reassessed, and the subsequent tax bills can leap dramatically.
"It's gonna be great for the beach house, but it's gonna be bad for
the bungalow," said Howard Duvall of the Municipal Association.
Right now, all homes worth $100,000 or less are exempt from property
taxes for school operations. People 65 and older also get an exemption
on the next $50,000 of their home's worth, regardless of their income
level.
The proposals would shift the tax burden to people living in moderate
homes, who would have to pick up the slack, Duvall said.
The legislature needs to have the "intestinal fortitude" to look hard
at the exemptions already in place and the taxes it steadfastly refuses
to raise, such as the cigarette tax, Duvall said.
• What should be done about property taxes?
"We advocate an impartial tax study commission not compiled of
legislators who are thinking about March primaries and November
elections," Duvall said.
A tax study commission should be created to look at the entire tax
structure, from sales taxes to property taxes to income taxes, and
figure out a fair and efficient way to work things out, said Jim Fields
of the Palmetto Institute.
• The forum lacked a strong advocate of the House and Senate
proposals, which at least one attendant pointed out.
"They all seem to be of the same mindset, and I agree with them,"
said Rock Hill resident Lonnie Harvey. "But I think when you hold a
forum, you should present both sides."
Rebecca Sulock • 329-4072
rsulock@heraldonline.com
