Property tax relief is a hot topic in
the General Assembly this year, and it will get hotter as more counties
experience what Beaufort County just went through -- property
reassessment. Soaring property values weren't such good news when it came
to tax time.
But a basic question appears to be lost in the shuffle. Why is the
legislature fiddling with a local tax? The legislature should leave
property tax questions to the people who set the tax rates: primarily
county councils, town councils and school boards.
The legislature, after all, tried to
give direct relief to local school property taxes and it found it can't
afford it. Back in the roaring 1990s, the General Assembly agreed to give
the people relief on school property taxes and make up the loss to the
school districts with state money. It subsequently had to cap the amount
it sent to the school districts or it would have sopped up all the growth
in general revenue.
Even with that largess, the General Assembly is still trying to find
ways to lower the local property tax. It has tried a cap on assessed
values for tax purposes, and a wide array of new ideas are now on the
table.
It would be better for the legislature to look at the bigger picture of
overall taxation in the state, particularly for schools, and direct the
complaints about rising property taxes to the local elected officials who
set the tax rate.
State Sen. Vincent Sheheen, D-Kershaw, is proposing a broader approach
that the legislature should carefully examine. He proposes using a 1-cent
or 2-cent increase in the state sales tax to replace local property taxes
for schools. There are a number of options and variables involved,
including a proposal to exempt the sales tax on food and axing some
current sales tax exemptions.
The public should review the proposals very carefully, particularly if
they would prevent local communities from boosting school spending if
desired.
But this approach would do more than apply Band-Aids to the real sore,
which is a rising local burden to fund schools and other government
functions while local governments must rely so heavily on the property
tax. As property values rise, this issue gets more emotional. It would be
best for the legislature to resist tinkering around the edges and discuss
the role of property tax and whether it can bear the burden now placed on
it.